Erste Group - Q1 2012 results presentation

Erste Group – Q1 2012 results presentation 30 April 2012

Strong net profit complemented by early EBA capital complianceAndreas Treichl, CEO, Erste GroupManfred Wimmer, CFO, Erste GroupGernot Mittendorfer, CRO, Erste Group

30 April 2012London

Q1 2012 results2

Disclaimer – Cautionary note regarding forward-looking statements

−

THE INFORMATION CONTAINED IN THIS DOCUMENT HAS NOT BEEN INDEPENDENTLY VERIFIED AND NO REPRESENTATION OR WARRANTY EXPRESSED OR IMPLIED IS MADE AS TO, AND NO RELIANCE SHOULD BE PLACED ON, THE FAIRNESS, ACCURACY, COMPLETENESS OR CORRECTNESS OF THIS INFORMATION OR OPINIONS CONTAINED HEREIN.

−

CERTAIN STATEMENTS CONTAINED IN THIS DOCUMENT MAY BE STATEMENTS OF FUTURE EXPECTATIONS AND OTHER FORWARD-LOOKING STATEMENTS THAT ARE BASED ON MANAGEMENT’S CURRENT VIEWS AND ASSUMPTIONS AND INVOLVE KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS, PERFORMANCE OR EVENTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED IN SUCH STATEMENTS.

−

NONE OF ERSTE GROUP OR ANY OF ITS AFFILIATES, ADVISORS OR REPRESENTATIVES SHALL HAVE ANY LIABILITY WHATSOEVER (IN NEGLIGENCE OR OTHERWISE) FOR ANY LOSS HOWSOEVER ARISING FROM ANY USE OF THIS DOCUMENT OR ITS CONTENT OR OTHERWISE ARISING IN CONNECTION WITH THIS DOCUMENT.

−

THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER OR INVITATION TO PURCHASE OR SUBSCRIBE FOR ANY SHARES AND NEITHER IT NOR ANY PART OF IT SHALL FORM THE BASIS OF OR BE RELIED UPON IN CONNECTION WITH ANY CONTRACT OR COMMITMENT WHATSOEVER.

30 April 2012London

Q1 2012 results3

Q1 2012 executive summary – Good start into 2012; EBA compliance ahead of schedule

−

Strong quarterly net profit of EUR 346.5m in Q1 2012 due to profitable core business in Austria, Czech Republic & Slovakia and one-off items:−

Gain on buyback of tier 1 and tier 2 instruments in the amount of EUR 250.6m (pre-tax)−

Extraordinary risk provisions of EUR 75.6m in Hungary relating to the interest subsidy scheme for performing FX loans imposed by legislation

−

Additional risk provisions of EUR 98.6m in Romania which resulted in increased NPL coverage ratio

−

Solid underlying operating performance when allowing for the exceptionally strong net trading result in the first quarter of 2011

−

Risk costs increased to EUR 580.6m (172bps) by 26.2% on Hungary and Romania−

NPL ratio based on customer loans was 8.8% as of Mar 2012 (Dec 2011: 8.5% )−

New NPL formation of EUR 463m driven by Romania and Hungary−

NPL coverage ratio increased to 61.9% (Dec 2011: 61.0%)−

No meaningful sovereign exposure to peripheral Europe

−

Loan-to-deposit ratio improved to 110.2% on the back of strong deposit inflows−

Successful issuance of covered and senior unsecured bonds further enhanced LT funding profile−

Ongoing investments in highly liquid assets improved liquidity ratios as of March 2012

−

Basel 2.5 CET1 ratio reaches 10.2%, EBA CET1 ratio rises to 9.7% as of March 2012−

CET 1 capital (excluding retained earnings for Q1 2012) improved markedly due to the recognition of collateral in Romania in line with international rules (IFRS) and the Austrian Banking Act

−

Further cut of EUR 2.3bn in RWA as a result of reduction in non-core assets

30 April 2012London

Q1 2012 results4

Presentation topics

−Business performance −Update on Hungary & Romania−Credit risk−Funding −Capital−Outlook−Appendix

−

Segments−

Asset quality−

CEE local consolidated results−

About Erste Group−

Shareholder structure

30 April 2012London

Q1 2012 results5

Budget Deficit and Debt to GDP 2012F

3.3 3.04.5

3.54.5

3.3 3.4

44.8%33.3%

47.1%55.5%

66.7%74.8%76.3%

0

2

4

6

8

HU AT HR PL SK CZ RO

in %

0%

20%

40%

60%

80%

100%

120%

Government budget deficit to GDP Public debt to GDP

Export growth in CEE

-30-20-10

0102030

Q2

08

Q3

08

Q4

08

Q1

09

Q2

09

Q3

09

Q4

09

Q1

10

Q2

10

Q3

10

Q4

10

Q1

11

Q2

11

Q3

11

Q4

11

in %

AT CZ RO SK HU

Real GDP growth in CEE

2.3 2.6

-1.6

4.2

1.33.

1

1.7 2.

5 3.3

1.7

0.9

0.5 1.2 1.4

-0.5

-4.5-3.8

-6.8-4

.9

-6.6

-10-8-6-4-202468

AT CZ RO SK HU

in %

2009 2010 2011 2012e

Operating environment: macro trends – CEE continued to outgrow the euro zone in Q1 2012

−

Different growth patterns in line with levels of export dependency and country-specific issues

−

AT: Economic growth continued in Q1 2012 despite fiscal consolidation

−

CZ, SK: growth in exports slowed while domestic demand remained sluggish in Q1 2012

−

RO: growth to be supported by a better EU funds absorption rate going into 2012

−

HU: new fiscal package important step towards IMF agreement

−

CEE (1.4%) will continue to outperform euro zone (0.0%) regarding GDP growth in 2012

Sources: Erste Group Research, IMF, Eurostat

2012e:AT: 4.1%CZ: 4.6%RO: 4.0%SK: 2.3%HU: 5.7%

2012 euro zone avg. 0.0%

Euro zone avg. budget deficit: 3.4%Euro zone avg. public debt: 91.1%

30 April 2012London

Q1 2012 results6

Key financial indicators – EPS and ROE increased yoy and qoq

** Red bars denote reported EPS and ROE respectively. Cash EPS and EPS calculated on average number of shares of 390.2m. Cash EPS and Cash ROE adjusted for non-cash items totalling EUR 12.6m in 1-3 2012 (linear amortisation of customer relationships after tax and non-controlling interests) but dividend on participation capital (EUR 35.3m) only included in Cash EPS.

Cash return on equity**

15.3%

11.8%

8.6%9.9%

11.3%11.4%

8.3%9.6%

11.2%

14.8%

1-3 08 1-3 09 1-3 10 1-3 11 1-3 12

YTD net interest margin

2.77% 2.86%3.05%

2.90% 2.87%

1-3 08 1-3 09 1-3 10 1-3 11 1-3 12

Cash earnings per share**

1.04

0.71 0.650.79

0.68 0.62

0.83 1.01

0.76 0.80

1-3 08 1-3 09 1-3 10 1-3 11 1-3 12

YTD cost income ratio

55.9%53.8%

48.9% 48.3%50.8%

1-3 08 1-3 09 1-3 10 1-3 11 1-3 12

30 April 2012London

Q1 2012 results7

Income statement (IFRS) – Sound operating result and positive one-off in Q1 2012

−

One-off income of EUR 250.6m pre-tax from buyback of tier 1 and tier 2 instruments drove other operating result−

Extraordinary risk provisions of EUR 75.6m in Hungary relating to the full impact of the interest subsidy scheme for performing FX loans imposed by legislation

−

Additional risk provisions of EUR 98.6m in Romania which resulted in increased NPL coverage ratio−

Trading mainly impacted by CDS valuation effects in Q1 2011 (EUR 97.0m)−

Banking taxes amounted to EUR 57.0m in Q1 2012 (Austria, Hungary and Slovakia) vs EUR 48.0m in Q1 2011

in EUR million 1-3 12 1-3 11 Change CommentNet interest income 1,336.9 1,302.0 2.7% Solid performance of core businessRisk provisions for loans (580.6) (460.1) 26.2% Extraordinary provisions in HU, RONet fee and commission income 430.3 455.2 (5.5%) Reduced securities businessNet trading result 93.6 236.7 (60.5%) CDS valuation effects in Q1 11General administrative expenses (945.1) (963.0) (1.9%) Strict cost control across the groupOther operating result 131.2 (128.7) na Buyback of own issuesResult from financial instruments - FV 41.5 9.5 >100.0% Improved environment in Q1 2012Result from financial assets - AfS (14.7) 19.2 na Selling losses on non-core assetsResult from financial assets - HtM (6.0) 0.2 na Selling losses on non-core assetsPre-tax profit/loss 487.1 471.0 3.4%Taxes on income (107.2) (106.8) 0.4%Net profit/loss for the period 379.9 364.2 4.3%

Non-controlling interests 33.4 42.8 (22.0%)Owners of the parent 346.5 321.4 7.8%

30 April 2012London

Q1 2012 results8

Income statement (IFRS) – Sound operating result and positive one-off in Q1 2012

in EUR million Q1 12 Q4 11 Change CommentNet interest income 1,336.9 1,434.9 (6.8%) Shift NII on trading assets in Q4 11 (EUR 53m)Risk provisions for loans (580.6) (407.7) 42.4% Additional provisions in HU, RONet fee and commission income 430.3 435.2 (1.1%) Modest decline in lending business qoqNet trading result 93.6 84.9 10.2%General administrative expenses (945.1) (959.3) (1.5%) Strict cost control across the groupOther operating result 131.2 (129.5) na Buyback of own issuesResult from financial instruments - FV 41.5 8.1 >100.0% Improved environment in Q1 2012Result from financial assets - AfS (14.7) (3.4) >100.0% Selling losses on non-core assetsResult from financial assets - HtM (6.0) (10.1) (40.6%) Selling losses on non-core assetsPre-tax profit/loss 487.1 453.1 7.5%Taxes on income (107.2) (135.4) (20.8%)Net profit/loss for the period 379.9 317.7 19.6%

Non-controlling interests 33.4 63.6 (47.5%)Owners of the parent 346.5 254.1 36.4%

−

One-off income of EUR 250.6m pre-tax from buyback of tier 1 and tier 2 instruments drove other operating result−

Extraordinary risk provisions of EUR 75.6m in Hungary relating to the full impact of the interest subsidy scheme for performing FX loans imposed by legislation

−

Additional risk provisions of EUR 98.6m in Romania which resulted in increased NPL coverage ratio−

Result from financial instruments at Fair Value increased due to improved environment in Q1 2012 −

Banking taxes amounted to EUR 57.0m in Q1 2012 (Austria, Hungary and Slovakia)

30 April 2012London

Q1 2012 results9

−

Reduction of non-core assets with high risk weight resulted in decrease of RWA in the amount of EUR 2.3bn −

Financial assets (sovereign bonds) rose as a result of preparatory actions to meet Basel III liquidity requirements as of 2014 (e.g. LCR) and because of investing surplus liquidity from growth in customer deposits

Balance sheet (IFRS) – Further RWA reduction in non-core business

in EUR million Mar 12 Dec 11 Change CommentCash and balances with central banks 5,480 9,413 (41.8%) Excess liquidity deposited with OeNBLoans and advances to credit institutions 13,403 7,578 76.9% Excess liquidity deposited with OeNBLoans and advances to customers 134,793 134,750 0.0%Risk provisions for loans and advances (7,407) (7,027) 5.4% Driven by Hungary & RomaniaDerivative financial instruments 10,989 10,931 0.5%Trading assets 8,116 5,876 38.1%Financial assets - FV 1,220 1,813 (32.7%)Financial assets - AfS 21,675 20,245 7.1% Basel 3, excess liquidity and depositFinancial assets - HtM 17,679 16,074 10.0% growth invested (bonds, CEE region) Equity holdings in associates 178 173 2.9%Intangible assets 3,480 3,532 (1.5%)Property and equipment 2,285 2,361 (3.2%)Current tax assets 115 116 (0.9%)Deferred tax assets 618 702 (12.0%)Assets held for sale 188 87 >100.0%Other assets 3,897 3,382 15.2%Total assets 216,709 210,006 3.2%

Risk-weighted assets 111,763 114,019 (2.0%)

30 April 2012London

Q1 2012 results10

Balance sheet (IFRS) – Equity up, loan-to-deposit ratio improved to 110.2%

−

Strong net profit and other comprehensive income of EUR 461.1m drove increase in equity; OCI improved primarily on positive valuation effects of AT & SK government bonds in AfS reserve

−

Deposits grew mainly in core Retail & SME business in Austria and Czech Republic−

Capital ratios increased markedly due to the recognition of collateral in Romania in line with international rules (IFRS) and the Austrian Banking Act

in EUR million Mar 12 Dec 11 Change CommentDeposits by banks 25,373 23,785 6.7% LTRO inflowCustomer deposits 122,349 118,880 2.9% Growth mainly in AT & CZDebt securities in issue 32,135 30,782 4.4% Successful issuance of covered & unsecuredDerivative financial instruments 9,332 9,337 (0.1%)Trading liabilities 558 536 4.1%Provisions 1,558 1,580 (1.4%)Current tax liabilities 52 34 52.9%Deferred tax liabilities 360 345 4.3%Other liabilities 4,243 3,764 12.7%Subordinated liabilities 4,776 5,783 (17.4%) Buyback of own issuesTotal equity 15,973 15,180 5.2% Strong net profit and OCI

Non-controlling interests 3,218 3,143 2.4%Owners of the parent 12,755 12,037 6.0%

Total liabilities and equity 216,709 210,006 3.2%

Core tier 1 ratio 10.2% 9.4%

30 April 2012London

Q1 2012 results11

Segment highlights – CZ, AT & SK doing well, RO and HU underperform

Special management attention focusing on:

Top segment performers in Q1 2012:

in EUR million 1-3 12 1-3 11 Change 1-3 12 1-3 11 Change 1-3 12 1-3 11 ChangeOperating income 412 425 (3.1%) 136 138 (1.3%) 241 237 1.6%Operating expenses (180) (185) (3.0%) (58) (55) 4.9% (151) (150) 1.1%Operating result 232 240 (3.1%) 78 83 (5.4%) 90 88 2.6%Risk costs (45) (71) (37.2%) (19) (21) (11.1%) (31) (35) (10.3%)Other result (1) (8) (87.0%) (5) (5) 8.0% 9 (1) na Net profit/loss 144 127 13.3% 43 45 (4.6%) 51 39 29.2%

Czech Republic Slovakia EBOe

in EUR million 1-3 12 1-3 11 Change 1-3 12 1-3 11 ChangeOperating income 109 120 (8.7%) 200 222 (9.8%)Operating expenses (42) (50) (16.3%) (90) (99) (9.2%)Operating result 68 70 (3.3%) 110 123 (10.2%)Risk costs (131) (77) 69.6% (191) (109) 75.0%Other result (16) (22) (24.5%) (8) (12) (35.2%)Net profit/loss (82) (32) >100.0% (72) 1 na

Hungary Romania

30 April 2012London

Q1 2012 results12

Presentation topics

−Business performance−Update on Hungary & Romania−Credit risk −Funding −Capital−Outlook−Appendix

−

Segments−

Asset quality−




30 April 2012London

Q1 2012 results13

Hungary update – Operating in a challenging environment

−

New fiscal package announced – important step to start IMF/EU talks−

Package to increase budget savings with the aim to meet deficit targets −

Combination of new taxes and spending cuts−

Very important step toward IMF agreement−

Still fragile economic environment −

Economy lagging behind other CEE countries and expected to shrink in 2012−

Relatively high public debt to GDP (76.3% expected in 2012)

−

EBH’s new management implementing new strategy−

Focus on local currency lending from locally sourced liquidity −

Reduce dependence on parent company funding−

Smaller size reflects market circumstances−

12% headcount reduction−

Network reduction by 43 branches−

EBH to reach profitability in 2014 based on its new strategy

−

Full amount of the estimated impact of new FX scheme booked in Q1 2012−

Instalment to be split by all stakeholders (government, bank, client)−

Available for clients with max. loan amount of HUF 20mn (EUR 68,000) at inception −

Rate caps will apply until 30 June 2017−

Estimated cumulative impact of EUR 75.6mn

30 April 2012London

Q1 2012 results14

Romania update – Domestic consumption and investments to drive recovery−

Slight quarterly economic contraction expected in Q1 2012, following eurozone’s downturn

−

Construction accelerated 5.7%* yoy, bolstered by the infrastructure projects

−

Household spending stabilized in Q1 2012

−

Economic sentiment indicator released by the EC up to 95.6 one-year high in Feb 12

−

Annual inflation down to 2.4% all-time low in March

−

Restructuring of the state-owned enterprises (SOEs) set as priority for 2012

−

State minority stakes in 19 companies to be listed on BSE by the end of 2012

−

RON slightly depreciated beyond 4.35 short-term−

Comfortable intl. reserves buffer of EUR 38.7bn as of March 12, covering ~8 months of imports

−

Also strong leverage for BNR to defend RON

−

Public debt at 32% of GDP as of Jan 12−

Financing of full-year budget deficit already covered

*) seasonally adjusted figures

Unemployment, inflation and wage growth

7.3%7.4%7.3%6.9%5.8%

7.9% 6.1% 5.8% 2.9%5.6%

-0.8% 2.1%-0.9%

-3.0%

18.2%

-8%

0%

8%

16%

24%

2008 2009 2010 2011 2012e

Unemployment (ave. %) CPI (average) Real wage growth

Key economic indicators

6.55.5 5.8

6.4 6.5

7.3%

-6.6%

-1.6%

2.5%

1.2%

0

2

4

6

8

2008 2009 2010 2011 2012e

in E

UR

thou

sand

-9%-6%-3%0%3%6%9%

GDP per capita Real GDP growth

30 April 2012London

Q1 2012 results15

−

NPL coverage increased to 52.2% from 50.1% as of Dec 2011

−

Low risk class improved to 45%

−

NPL ratio rose to 24.3%, affected by continued sluggish economic performance

−

NPL ratio up mainly on several defaults in local corporate business & reduced NPL sales

−

Minor decrease of loan book also had a negative effect

−

Focus in corporate business on growth industries and infrastructure projects

−

Gradual progress in retail due to improved quality of loans originated in the last 2 years

−

Conservative approach on new consumer lending, in line with new BNR rules - lower tenor, debt to income and LTV levels, updated rating model

−

Prima casa continues to be most important product in retail (approx EUR 1.2 bn or 22% of total BCR retail portfolio)

−

New management board approved by NBR

Romania update – Improved NPL coverage ratio

Segment Romania - Migration analysis

18.3% 19.2% 22.0%

12.6% 7.3% 6.4% 6.0%

19.3% 24.7% 28.0%

22.7% 24.3%

16.8%

28.7% 24.7%

45.7% 43.6% 42.7% 42.2% 45.0%

64.9% 68.2% 70.7% 70.9% 69.7%

35.1% 31.8% 29.3% 29.1% 30.3%

0%

20%

40%

60%

80%

100%

Mar 11 Jun 11 Sep 11 Dec 11 Mar 120%

20%

40%

60%

80%

100%

Non-performing Substandard Management attnLow risk Low risk classes High risk classes

Quarterly NPL growth (absolute/ relative)

156102

305

64436.1%4.2%

14.4%

3.1%2.1%0

100

200

300

400

Mar 11 Jun 11 Sep 11 Dec 11 Mar 12

in E

UR

mill

ion

0%

10%

20%

30%

NPL growth (absolute) NPL growth (relative)

30 April 2012London

Q1 2012 results16

Presentation topics


−

Segments−

Asset quality−




30 April 2012London

Q1 2012 results17

Loan book review – Customer loans grew 1.5% year-on-year

Customer loans by main segments *

64.1 65.2 65.7 65.8 65.5

49.2 49.7 49.5 48.6 49.0

18.7 19.3 19.8 19.8132.8 134.1 135.2 134.7 134.8

18.9

0

30

60

90

120

150

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12

in E

UR

bill

ion

Retail & SME - Austria Retail & SME - CEE GCIB

Quarterly loan book trends(Retail & SME detail: CEE)

18.0 18.1 17.9 17.2 17.8

11.3 11.1 11.0 11.2 11.1

5.8 5.9 6.0 6.2 6.3 7.6 7.9 7.7 7.1 6.9 5.6 5.8 5.8 5.9 6.0

49.2 49.7 49.5 48.6 49.0

0

10

20

30

40

50

60

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12

in E

UR

bill

ion

Czech Republic Romania Slovakia Hungary Croatia Other CEE

*) Segment loan volumes do not exactly add up to total due to consolidation effects

Customer loans by currency

64.2% 63.8% 64.4%

19.7% 19.6% 19.3% 18.6% 19.3%

12.4% 12.9% 12.5% 11.9% 11.4%2.1% 2.0% 2.1% 2.0% 1.8%

65.6% 65.6%

0%

20%

40%

60%

80%

100%

Mar 11 Jun 11 Sep 11 Dec 11 Mar 12EUR CEE-LCY CHF USD Other

−

Customer loans grew by 1.5% yoy despite decline in Hungary

−

Notable growth of retail portfolio in Slovakia and corporate business in Austria compensated for decline in Hungary (FX conversion) yoy

−

Share of CHF loans on declining trend

−

Compared to YE 2011 customer loans flat−

Decrease of portfolio in Hungary ongoing in Q1 12−

Strong demand for mortgages in Czech Republic −

In GCIB portfolio large corporate business continued to grow

−

Reduction of non-core business led to decline of international business and real estate

30 April 2012London

Q1 2012 results18

Asset quality review – NPL formation increased as a result of lower NPL sales

Erste Group: NPL ratio vs NPL coverage

7.7% 7.9% 8.2% 8.5% 8.8%

61.4% 60.6%

63.9%

61.0% 61.9%

0%

5%

10%

15%

20%

25%

30%


55%

60%

65%

NPL ratio NPL coverage (exc collateral)

Quarterly NPL growth (absolute/relative)

242 323499

275463

2.4%3.1%

4.7%

2.5%

4.1%

0

400

800

1,200

1,600


in E

UR

mill

ion

-4%

0%

4%

8%

NPL growth (absolute) NPL growth (relative)

Customer loans by risk class

71.4% 70.6% 70.5% 71.1% 71.6%

16.5% 17.6% 18.0% 17.2% 16.6%4.4% 3.9% 3.3% 3.2% 3.1%7.7% 7.9% 8.2% 8.5% 8.8%

0%

20%

40%

60%

80%

100%

Mar 11 Jun 11 Sep 11 Dec 11 Mar 12Low risk Management attn Substandard Non-performing

−

New NPL formation accelerated qoq mainly due to lower NPL sales

−

NPL ratio in Hungary increasing due to shrinking portfolio and difficult economic environment

−

Reduced NPL sales of EUR 38m in Q1 2012 compared to EUR 163m in Q4 2011

−

NPL coverage ratio increased to 61.9% −

Migration trends positive on group level−

Although new NPL formation is still significant, substandard and mgmt attn are decreasing and low risk share is increasing

30 April 2012London

Q1 2012 results19

Asset quality review – Segment round-up: HU and RO remained challenging

NPL ratios in key segments

5.6% 5.6%

24.3%

8.0%

23.5%

6.7%

0%

5%

10%

15%

20%

25%

Austria Czech R Romania Slovakia Hungary GCIBMar 11 Jun 11 Sep 11 Dec 11 Mar 12

NPL coverage ratios in key segments(excluding collateral)

61.9%71.0%

52.2%

80.9%68.4%

61.6%

0%

20%

40%

60%

80%

100%

Austria Czech R Romania Slovakia Hungary GCIBMar 11 Jun 11 Sep 11 Dec 11 Mar 12

−

Retail & SME/Austria: NPL ratio stable−

Stable development in saving banks as well as EBOe−

Further reduction of CHF loans due to conversion into EUR loans

−

Retail & SME/CEE: Deterioration in Hungary and Romania

−

Hungary still problematic:−

NPL ratio increased further as a result of recession and shrinking portfolio (FX conversion)

−

NPL coverage ratio slightly down due to usage of provisions for FX conversion

−

Lower new sales−

Romania shows diverging development−

Rising NPL ratio on several defaults in local corporate business and slower than expected recovery

−

NPL coverage increased−

Slovakia: Good quality loan growth−

Czech Republic: New production mainly in low risk mortgage business

30 April 2012London

Q1 2012 results20

Asset quality review – Risk costs increased in Hungary and Romania

Risk costs in key segments

97 91 94 69 8371 68 49 22 45109 115 150

126191

21 20 1617

1977 77

547

111131 56 57

58

8

75 29 33

24

56

460 461

938

408

581 37

0

200

400

600

800

1,000

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12

in E

UR

mill

ion

Austria Czech Republic Romania Slovakia Hungary GCIB Other

Risk costs in key segments

1.35% 1.72%1.19%

6.94%

1.00%0.49%

7.56%

0%

2%

4%

6%

8%

10%

AT CZ RO SK HU GCIB Group

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12

−

GCIB: demand is growing in GLC business−

Improved asset quality leading to continuously increasing share of low risk

−

Defaults in big ticket real estate business led to increase of risk cost but also improved coverage ratio

−

Increase of risk cost mainly driven by Hungary and Romania

−

One-off risk provisions of EUR 75.6m in Hungary related to the interest subsidy scheme for performing FX borrowers

−

Extraordinary risk provisions of EUR 98.6m in Romania which resulted in increased NPL coverage ratio

−

Long-term improvement trend of risk costs in AT, SK and CZ

−

In Q1 2012 risk costs in AT, SK and CZ increased compared to exceptional low level of provisioning in Q4 2011

30 April 2012London

Q1 2012 results21

Drill-down on selected asset classes – No meaningful sovereign exposure to peripheral Europe

Total net exposure of Erste Group (incl. savings banks) to selected European countries:in EUR million

Dec 10 Dec 11 Mar 12 Dec 10 Dec 11 Mar 12 Dec 10 Dec 11 Mar 12 Dec 10 Dec 11 Mar 12Greece 602.2 4.4 3.9 172.0 57.9 15.1 7.7 7.6 7.6 781.9 69.9 26.7Ireland 88.6 46.5 61.1 252.2 204.4 107.4 81.7 78.2 67.1 422.6 329.1 235.6Portugal 234.6 5.6 3.8 280.5 94.0 70.1 14.3 13.0 9.6 529.5 112.6 83.5Spain 114.2 23.8 5.8 734.6 282.2 400.7 383.6 425.6 328.5 1,232.4 731.6 735.0Italy 1,075.8 472.6 70.7 1,164.8 806.8 720.5 1,082.0 582.0 619.4 3,322.6 1,861.4 1,410.6Sum total 2,115.5 553.0 145.2 2,604.2 1,445.2 1,313.8 1,569.3 1,106.4 1,032.2 6,288.9 3,104.6 2,491.3

Sovereign net exposure by country and portfolio:in EUR million

Dec 10 Dec 11 Mar 12 Dec 10 Dec 11 Mar 12 Dec 10 Dec 11 Mar 12 Dec 10 Dec 11 Mar 12Greece 456.5 -8.5 1.3 77.5 10.3 2.6 68.2 2.6 0.0 602.2 4.4 3.9Ireland 59.7 0.0 0.0 25.3 31.8 46.4 3.6 14.7 14.7 88.6 46.5 61.1Portugal 168.4 0.0 0.0 10.6 5.6 3.8 55.6 0.0 0.0 234.6 5.6 3.8Spain 35.1 -27.1 -26.2 51.6 38.7 29.8 27.5 12.2 2.2 114.2 23.8 5.8Italy 907.2 399.9 0.0 149.1 70.9 70.7 19.5 1.8 0.0 1,075.8 472.6 70.7Sum total 1,627.0 364.3 -25.0 314.1 157.3 153.3 174.4 31.3 16.9 2,115.5 553.0 145.2

Bank net exposure by country and portfolio:in EUR million

Dec 10 Dec 11 Mar 12 Dec 10 Dec 11 Mar 12 Dec 10 Dec 11 Mar 12 Dec 10 Dec 11 Mar 12Greece 0.1 0.0 2.2 0.0 0.0 0.0 171.9 57.9 13.0 172.0 57.9 15.1Ireland 141.8 99.4 64.8 90.4 92.0 38.7 20.0 13.0 3.9 252.2 204.4 107.4Portugal 71.7 9.4 15.3 56.4 29.7 0.0 152.4 54.9 54.8 280.5 94.0 70.1Spain 341.0 61.9 166.8 163.6 64.5 56.1 229.9 155.8 177.8 734.6 282.2 400.7Italy 322.8 233.6 28.1 152.7 180.6 186.6 689.2 392.6 505.8 1,164.8 806.8 720.5Sum total 877.5 404.3 277.2 463.3 366.8 830.1 1,263.4 674.2 755.2 2,604.2 1,445.2 1,313.8

FV

FV AfS

AfS

Total net exposureSovereign Bank Other

At amortised cost

At amortised cost

Total net exposure

Total net exposure

30 April 2012London

Q1 2012 results22

Presentation topics


−

Segments−

Asset quality−




30 April 2012London

Q1 2012 results23

Funding update – Strong deposit inflow in Q1 2012

Customer deposit trends by subsegments(Retail & SME detail: CEE)

26.6 25.9 26.5 24.3 25.8

7.7 7.7 7.8 8.0 7.9

7.1 7.1 7.1 7.2 7.3 4.0 4.2 4.1 3.7 3.6 4.0 3.9 4.0 4.0 4.0

50.1 49.5 50.1 47.8 49.2

0

10

20

30

40

50

60

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12

in E

UR

bill

ion

Czech Republic Romania Slovakia Hungary Croatia Other CEE

Customer deposit trends by subsegments(Retail & SME detail: Austria)

32.6 32.7 33.2 33.6 34.0

28.1 28.8 28.7 28.8 29.6

60.7 61.5 61.8 62.3 63.6

0

15

30

45

60

75

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12

in E

UR

bill

ion

Savings banks EB Oesterreich

−

Customer deposits grew by 2.9% compared to YE 2011−

In Q1 12 most visible inflow in Czech Rep and EBOe−

FX effect reversed compared to Q4 11 with CZK and HUF strengthening against the EUR in Q1 12

−

Retail & SME deposits increased by 2.4 % ytd−

In CEE Czech Rep (+6.2%) and Slovakia (+1.5%) continued to grow their solid deposit base

−

Austria grew by 2.0% ytd, supported by EBOe (+2.8% ytd)−

Currency-adjusted: other core markets reported stable or slightly declining volumes

−

Loan/deposit ratio decreased to 110.2% as of Mar 2012 (YE 2011: 113.3%)

Customer deposit trends by main segments

60.7 61.5 61.8 62.3 63.6

50.1 49.5 50.1 47.8 49.2

5.4 5.5 5.5 5.8119.2 120.8 121.5 118.9 122.3

6.3

0

25

50

75

100

125

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12

in E

UR

bill

ion

Retail & SME - Austria Retail & SME - CEE GCIB Group Markets

30 April 2012London

Q1 2012 results24

Funding update – Retail deposits remained a key pillar in the funding mix

Short-term funding vs collateral coverage

32.125.7 24.0 22.3 21.3

27.931.6 31.6

27.623.4

116.3%

141.7% 148.4%

107.4%

72.9%

0

10

20

30

40

50

Dec 08 Dec 09 Dec 10 Dec 11 Mar 12

in E

UR

bill

ion

0%20%40%60%80%100%120%140%160%

S-t funding Unencumbered collateral Collateral coverage

Evolution of Erste Group's funding mix

57.0% 58.9% 61.1% 60.9% 60.9%

15.9% 15.6% 16.3% 15.8% 16.0%

18.1% 13.8% 10.5% 12.2% 12.6%5.8% 8.5% 9.0% 8.2% 8.1%3.2% 3.2% 3.0% 3.0% 2.4%

0%

20%

40%

60%

80%

100%

Dec 08 Dec 09 Dec 10 Dec 11 Mar 12Customer deposits Issued bonds & CDs Deposits by banksEquity Subordinated capital

Redemption profile of Erste GroupMar 2012

3.6

5.2 5.4

3.7 3.8

2.2

1.31.0 0.9

2.1 1.8

0.7

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2022+

in E

UR

bill

ion

Senior unsecured Covered bonds Subordinated debt Debt CEE subsidiaries

−

Short-term funding needs very well covered−

Investment in highly liquid assets emphasized by continuously rising collateral coverage of short-term funding needs

−

Limited long-term funding required−

Reduced funding needs for 2012 due to decrease of non-core business

−

Prolongation of average maturity (2011 with approx. 7.5 years)−

10yr EUR 1bn Pfandbrief in Feb 12 (MS +130bps)−

5yr EUR 500mn Senior Unsecured in Mar (MS +175bps)−

Total issuance of EUR 2.6bn ytd

30 April 2012London

Q1 2012 results25

Presentation topics


−

Segments−

Asset quality−




30 April 2012London

Q1 2012 results26

Capital position – Strongly enhanced capital ratios as of March 2012

Core tier 1 ratio (total risk) = tier 1 capital excl. hybrid and after regulatory deductions divided by total RWA - including credit risk, market and operational risk. Based on Basel 2.5

Core tier 1 ratio excl. part capital(total risk)

5.2%

6.9%7.7% 7.8%

8.6%


Core tier 1 ratio(total risk)

5.2%

8.3%9.2% 9.4%

10.2%


−

EBA capital ratio of 9.7% as of March 2012 (excluding retained earnings for Q1 2012)

−

EBA capital ratio adjusted for extraordinary effect in Romania: 9.1%

−

CET1 ratio: 10.2%−

CET1 excl part cap: 8.6%−

CET1 capital improved to EUR 11.4bn (YE 2011: EUR 10.7bn) due to the recognition of collateral in Romania in line with international rules (IFRS) and the Austrian Banking Act

−

For 2013 Erste Group plans to adopt IFRS for the calculation of regulatory capital ratios

−

Deductions of EUR 350m (pro-forma basis January 2012) reduce the positive impact from EUR 700m to EUR 350m

−

Further decrease in RWA of EUR 2.3bn on reduction of non-core business

−

Proposal to the AGM to enable establishment of a horizontal group (“Gleichordnungskonzern”) with savings banks in order to avoid capital deduction of about EUR 1.5bn under Basel 3 (as of 2013)

30 April 2012London

Q1 2012 results2727

Presentation topics


−

Segments−

Asset quality−




30 April 2012London

Q1 2012 results2828

Conclusion – Outlook

−

Most of Erste Group's core markets are expected to post economic growth in 2012−

In line with weakening outlook for the euro zone in the second half of 2011−

Austria, Czech Republic and Slovakia are well positioned to weather a potential recession in EU−

Hungary: new fiscal package important step towards IMF agreement

−

Erste Group expects a stable operating result in 2012 −

Supported by selective loan growth in core markets and further cost reductions

−

Risk costs expected to decline to about EUR 2.0 billion in 2012−

Impacted by one-off provisioning requirements in Hungary (EUR 75.6 million in Q1 2012) and by the slow economic recovery in Romania

−

Net income will be further supported by one-off income of EUR 160m (pretax) from the buyback of additional tier 1- and tier 2-instruments in Q2 2012

−

Erste Group expects to comfortably and sustainably meet all capital requirements (EBA, Basel 3) as and when required

30 April 2012London

Q1 2012 results2929

Presentation topics

−

Business performance

−

Update on Hungary & Romania

−

Credit risk

−

Funding

−

Capital

−

Outlook

−

Appendix

−

Segments−

Asset quality−




30 April 2012London

Q1 2012 results3030

Segment review – Core segments affected by one-off items

in EUR million 1-3 12 1-3 11 1-3 12 1-3 11 1-3 12 1-3 11 1-3 12 1-3 11 1-3 12 1-3 11

Net interest income 1,105.1 1,135.9 128.2 127.7 46.1 24.6 57.5 13.8 1,336.9 1,302.0Risk provisions for loans and advances (505.4) (404.2) (75.2) (55.9) 0.0 0.0 0.0 0.0 (580.6) (460.1)Net fee and commission income 393.9 413.6 20.2 30.1 35.0 36.3 (18.8) (24.8) 430.3 455.2Net trading result 45.2 37.0 5.9 101.2 81.4 95.5 (38.9) 3.0 93.6 236.7General administrative expenses (809.4) (827.8) (44.6) (44.9) (57.5) (61.6) (33.6) (28.7) (945.1) (963.0)Other result (37.7) (54.1) (21.9) (1.4) (1.0) 3.5 212.6 (47.8) 152.0 (99.8)Pre-tax profit/-loss 191.7 300.4 12.6 156.8 104.0 98.3 178.8 (84.5) 487.1 471.0Taxes on income (68.1) (70.7) (4.6) (37.3) (21.1) (20.8) (13.4) 22.0 (107.2) (106.8)Post-tax profit/loss 123.6 229.7 8.0 119.5 82.9 77.5 165.4 (62.5) 379.9 364.2Post-tax profit from discontinuing operations 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Net profit/loss for the period 123.6 229.7 8.0 119.5 82.9 77.5 165.4 (62.5) 379.9 364.2

Attributable to non-controlling interests 37.4 37.1 1.6 5.3 1.9 3.7 (7.5) (3.3) 33.4 42.8Attributable to owners of the parent 86.2 192.6 6.4 114.2 81.0 73.8 172.9 (59.2) 346.5 321.4

Average risk-weighted assets 71,540.0 75,240.8 22,556.1 24,730.6 2,555.2 2,611.7 13.6 1,034.2 96,664.9 103,617.3Average attributed equity 5,013.9 4,134.5 2,256.5 1,979.4 339.6 304.1 4,788.3 6,969.6 12,398.4 13,387.6Cost/income ratio 52.4% 52.2% 28.9% 17.3% 35.4% 39.4% na na 50.8% 48.3%Return on equity 6.9% 18.6% 1.1% 23.1% 95.4% 97.1% 14.4% (3.4%) 11.2% 9.6%EOP customer loans 114,445.8 113,274.6 19,790.0 18,872.2 205.7 374.9 351.9 303.1 134,793.4 132,824.9EOP customer deposits 112,774.3 110,773.8 5,847.6 6,291.0 2,857.6 3,029.7 865.9 (889.6) 122,345.5 119,205.0

Total groupRetail & SME GCIB Group Markets Corporate Center

30 April 2012London

Q1 2012 results3131

Core segment – Austria EBOe posts another record quarterly net result

in EUR million 1-3 12 1-3 11 1-3 12 1-3 11 1-3 12 1-3 11

Net interest income 240.9 234.1 161.7 152.9 402.6 387.0Risk provisions for loans and advances (51.3) (62.1) (31.4) (35.0) (82.7) (97.1)Net fee and commission income 98.7 100.8 82.7 82.0 181.4 182.8Net trading result 3.9 5.6 (3.1) 2.5 0.8 8.1General administrative expenses (235.4) (233.4) (151.4) (149.8) (386.8) (383.2)Other result (12.0) (6.8) 8.6 (0.7) (3.4) (7.5)Pre-tax profit/-loss 44.8 38.2 67.1 51.9 111.9 90.1Taxes on income (11.3) (9.5) (14.8) (11.4) (26.1) (20.9)Post-tax profit/loss 33.5 28.7 52.3 40.5 85.8 69.2Post-tax profit from discontinuing operations 0.0 0.0 0.0 0.0 0.0 0.0Net profit/loss for the period 33.5 28.7 52.3 40.5 85.8 69.2

Attributable to non-controlling interests 30.6 26.8 1.8 1.4 32.4 28.2Attributable to owners of the parent 2.9 1.9 50.5 39.1 53.4 41.0

Average risk-weighted assets 23,593.2 24,046.1 13,334.6 13,522.8 36,927.8 37,568.9Average attributed equity 365.2 293.6 1,310.0 1,075.2 1,675.2 1,368.8Cost/income ratio 68.5% 68.5% 62.7% 63.1% 66.1% 66.3%Return on equity 3.2% 2.6% 15.4% 14.5% 12.8% 12.0%EOP customer loans 37,411.0 37,036.1 28,070.4 27,052.1 65,481.3 64,088.2EOP customer deposits 33,996.5 32,615.1 29,569.8 28,103.2 63,566.3 60,718.3

Savings banks EB Oesterreich Austria

30 April 2012London

Q1 2012 results3232

Core segment Central and Eastern Europe (1) – Diverging trends in operating performance …

in EUR million 1-3 12 1-3 11 1-3 12 1-3 11 1-3 12 1-3 11 1-3 12 1-3 11Net interest income 282.6 284.4 153.0 186.0 106.4 109.3 81.7 93.0Risk provisions for loans and advances (44.5) (70.9) (191.4) (109.4) (18.5) (20.8) (131.1) (77.3)Net fee and commission income 112.2 124.7 30.2 34.7 27.7 27.9 21.9 22.8Net trading result 16.7 15.5 16.9 1.1 2.1 0.8 5.6 3.8General administrative expenses (179.5) (185.1) (89.7) (98.8) (58.0) (55.3) (41.5) (49.6)Other result (1.0) (7.7) (7.9) (12.2) (5.4) (5.0) (16.3) (21.6)Pre-tax profit/-loss 186.5 160.9 (88.9) 1.4 54.3 56.9 (79.7) (28.9)Taxes on income (39.1) (31.0) 12.6 (0.3) (11.0) (11.5) (2.1) (2.8)Post-tax profit/loss 147.4 129.9 (76.3) 1.1 43.3 45.4 (81.8) (31.7)Post-tax profit from discontinuing operations 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Net profit/loss for the period 147.4 129.9 (76.3) 1.1 43.3 45.4 (81.8) (31.7)

Attributable to non-controlling interests 3.1 2.5 (4.1) 0.4 0.0 0.0 0.0 0.0Attributable to owners of the parent 144.3 127.4 (72.2) 0.7 43.3 45.4 (81.8) (31.7)

Average risk-weighted assets 12,641.1 13,410.1 8,616.4 9,151.8 4,252.0 4,962.9 3,534.1 4,500.3Average attributed equity 1,280.7 1,102.9 825.0 522.9 439.7 411.1 361.9 371.6Cost/income ratio 43.6% 43.6% 44.8% 44.5% 42.6% 40.1% 38.0% 41.5%Return on equity 45.1% 46.2% (35.0%) 0.5% 39.4% 44.2% (90.4%) (34.1%)EOP customer loans 17,833.4 18,017.0 11,082.0 11,291.5 6,278.2 5,778.2 6,877.3 7,644.3EOP customer deposits 25,800.8 26,639.1 7,874.2 7,704.9 7,312.6 7,096.3 3,558.3 4,010.3

Czech Republic Romania Slovakia Hungary

30 April 2012London

Q1 2012 results3333

Core segment Central and Eastern Europe (2) – … and risk cost levels across the region continued

in EUR million 1-3 12 1-3 11 1-3 12 1-3 11 1-3 12 1-3 11 1-3 12 1-3 11Net interest income 64.1 61.3 8.7 8.6 6.0 6.3 702.5 748.9Risk provisions for loans and advances (32.2) (23.2) (2.2) (2.0) (2.8) (3.5) (422.7) (307.1)Net fee and commission income 15.8 17.0 3.5 2.7 1.2 1.0 212.5 230.8Net trading result 2.2 3.5 0.4 0.0 0.5 4.2 44.4 28.9General administrative expenses (33.6) (35.7) (8.3) (8.2) (12.0) (11.9) (422.6) (444.6)Other result (2.3) (1.8) (0.3) (0.3) (1.1) 2.0 (34.3) (46.6)Pre-tax profit/-loss 14.0 21.1 1.8 0.8 (8.2) (1.9) 79.8 210.3Taxes on income (2.4) (4.2) 0.0 0.0 0.0 0.0 (42.0) (49.8)Post-tax profit/loss 11.6 16.9 1.8 0.8 (8.2) (1.9) 37.8 160.5Post-tax profit from discontinuing operations 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Net profit/loss for the period 11.6 16.9 1.8 0.8 (8.2) (1.9) 37.8 160.5

Attributable to non-controlling interests 5.5 5.7 0.5 0.3 0.0 0.0 5.0 8.9Attributable to owners of the parent 6.1 11.2 1.3 0.5 (8.2) (1.9) 32.8 151.6

Average risk-weighted assets 4,230.2 4,372.5 499.8 547.9 838.6 726.5 34,612.2 37,672.0Average attributed equity 301.2 256.4 42.0 37.3 88.1 63.5 3,338.7 2,765.7Cost/income ratio 40.9% 43.6% 65.9% 72.6% 155.8% 103.5% 44.0% 44.1%Return on equity 8.1% 17.5% 12.4% 5.4% (37.2%) (12.0%) 3.9% 21.9%EOP customer loans 5,970.8 5,575.8 482.4 436.0 440.3 443.7 48,964.5 49,186.4EOP customer deposits 3,999.2 4,028.4 458.1 439.7 204.8 136.9 49,208.1 50,055.5

Croatia Serbia Ukraine CEE

30 April 2012London

Q1 2012 results3434

Segment Retail & SME – Positive performance in core business hurt by HU & RO

−

Operating result down as reduced operating expenses did not overcompensate decrease in operating income

−

Operating income decreased by 2.7% yoy−

Growing share of secured lending in portfolio composition and sluggish demand for unsecured consumer lending led to decline in net interest income

−

Low interest environment additionally weighing on NII −

Strict cost control resulted in decreased of operating expenses

−

Other result improved on result from financial assets−

Main negative drivers for the other result in 2011 were valuation impacts on financial assets portfolios in CZ, AT & SK which were partially reversed in Q1 12

−

Less negative extraordinary effects across the Group in Q1 2012

−

Net profit dropped on extraordinary risk provisions in Hungary and Romania

−

ROE declined to 6.9% (1-3 2011: 18.6%)

−

CIR was nearly unchanged at 52.4% (1-3 2011: 52.2%)

in EUR million Q1 12 Q4 11 ChangeNet interest income 1,105.1 1,177.0 (6.1%)Net fee income 393.9 414.2 (4.9%)Net trading result 45.2 7.4 >100.0%Operating expenses (809.4) (801.0) 1.0%Operating result 734.8 797.6 (7.9%)Risk provisions (505.4) (388.0) 30.3%Other result (37.7) (72.3) (47.9%)Net profit/loss 86.2 193.2 (55.4%)

in EUR million 1-3 12 1-3 11 ChangeNet interest income 1,105.1 1,135.9 (2.7%)Net fee income 393.9 413.6 (4.8%)Net trading result 45.2 37.0 22.2%Operating expenses (809.4) (827.8) (2.2%)Operating result 734.8 758.7 (3.2%)Risk provisions (505.4) (404.2) 25.0%Other result (37.7) (54.1) (30.3%)Net profit/loss 86.2 192.6 (55.2%)

30 April 2012London

Q1 2012 results3535

Segment Retail & SME – Loan book analysis

Segment Retail & SME -Customer loans by Basel II customer segment

50.6 51.8 51.8 51.1 51.3

12.7 12.7 12.7 12.6 12.5

43.6 44.4 43.9 44.1

6.6 6.7 6.3 6.7 6.7113.3 114.8 115.2 114.4 114.4

43.4

0

30

60

90

120


in E

UR

bill

ion

Retail - Private individuals Retail - Micros SME/local corporates Municipalities

Segment Retail & SME -Customer loans by currency

61.6% 61.2% 61.8% 63.2% 63.2%

22.1% 21.9% 21.6% 21.0% 21.6%

14.3% 14.9% 14.4%2.0% 2.0% 2.2% 2.2% 2.0%

13.7% 13.1%

0%

20%

40%

60%

80%

100%

Mar 11 Jun 11 Sep 11 Dec 11 Mar 12EUR CEE-LCY CHF Other

Migration analysis - Segment Retail & SME

72.3% 71.4% 70.9% 70.8% 71.2%

15.2% 16.4% 17.2% 16.4%4.4% 3.9% 3.3% 3.3% 3.2%8.1% 8.3% 8.6%

17.1%

9.2%8.8%

0%

20%

40%

60%

80%

100%


Segment Retail & SME - NPL ratio vs NPL coverage

8.1% 8.3% 8.6% 8.8% 9.2%

62.0% 60.9% 64.8% 61.7% 61.9%

0%

5%

10%

15%

20%

25%

30%


20%

40%

60%

80%

100%

NPL ratio NPL coverage (excl collateral)

30 April 2012London

Q1 2012 results36

−

Operating result slightly declined on lower fee income

−

NII was up on increased volume in Group Large Corporate −

Fee income decreased on reduction in real estate project development business

−

Net trading income improved on strong FX business−

Costs declined on restructuring started in Q4 2011

−

Annualized risk cost increased (149 bps on average customer loans in Q1 2012 vs 91bps in Q1 2011)

−

Primarily due to provisions in big ticket real estate business and in Group Large Corporate in Romania

−

Significant increase of NPL coverage ratio

−

Other result declined in Q1 12−

Negative valuation effects were main driver

−

Net profit was down on higher risk costs

−

CIR was flat at 30.5% (Q1 2011: 30.5%)

36

Segment GCIB excl IB – Net profit declined on higher risk costs and lower fees

in EUR million 1-3 12 1-3 11 ChangeNet interest income 105.4 101.6 3.7%Net fee income 19.4 28.8 (32.6%)Net trading result 4.9 1.4 >100.0%Operating expenses (39.6) (40.2) (1.5%)Operating result 90.1 91.6 (1.6%)Risk provisions (77.0) (44.2) 74.2%Other result (8.4) (6.3) 33.3%Net profit/loss 0.2 26.6 (99.2%)

in EUR million Q1 12 Q4 11 ChangeNet interest income 105.4 121.8 (13.5%)Net fee income 19.4 24.2 (19.8%)Net trading result 4.9 (6.4) na Operating expenses (39.6) (49.3) (19.7%)Operating result 90.1 90.3 (0.2%)Risk provisions (77.0) (13.5) >100.0%Other result (8.4) 7.8 na Net profit/loss 0.2 61.3 (99.7%)

30 April 2012London

Q1 2012 results37

−

Reduction in business and close-out of CDS portfolio visible in International Business Division’s result

−

Operating income, especially NTR, declined sharply on closed CDS positions

−

NII declined on reduced business−

Net trading result driven by CDS mark-to-market valuation in 2011

−

Risk costs declined on release of portfolio risk provisions

−

Other result markedly negative in Q1 2012−

Losses on sale of AfS and HtM securities, mainly European CMBS and RMBS

−

In Q1 12 net profit was sharply lower due to positive valuation effects in Q1 11

−

Average RWAs down to approx. EUR 4.3bn in Q1 2012 vs EUR 6.7bn in Q1 2011

37

International Business (GCIB) – Restructuring of non-core business ongoing

in EUR million 1-3 12 1-3 11 ChangeNet interest income 22.8 26.1 (12.6%)Net fee income 0.8 1.3 (38.5%)Net trading result 1.0 99.8 (99.0%)Operating expenses (5.0) (4.6) 8.7%Operating result 19.6 122.6 (84.0%)Risk provisions 1.8 (11.7) na Other result (13.5) 4.9 na Net profit/loss 6.2 87.7 (92.9%)

in EUR million Q1 12 Q4 11 ChangeNet interest income 22.8 27.4 (16.8%)Net fee income 0.8 1.5 (46.7%)Net trading result 1.0 22.7 (95.6%)Operating expenses (5.0) (4.5) 11.1%Operating result 19.6 47.1 (58.4%)Risk provisions 1.8 5.7 (68.4%)Other result (13.5) (21.9) (38.4%)Net profit/loss 6.2 25.5 (75.7%)

30 April 2012London

Q1 2012 results3838

Segment GCIB (incl IB) – Loan book analysis

Segment GCIB -Customer loans by Basel II customer segment

17.9 17.7 18.1 18.4 18.5

1.0 1.0 1.2 1.4 1.318.7 19.3 19.8 19.818.9

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Corporates Municipalities

Segment GCIB - Customer loans by currency

79.4% 79.4% 79.7% 78.8% 78.8%

10.2% 10.1% 9.9% 9.3% 8.3%5.5% 5.7% 5.7%1.2% 1.2% 1.2% 1.7% 1.6%3.7% 3.7% 3.5% 4.5% 4.9%

6.3%5.7%

0%

20%

40%

60%

80%

100%

Mar 11 Jun 11 Sep 11 Dec 11 Mar 12EUR USD CEE-LCY CHF Other

Segment GCIB -NPL ratio vs NPL coverage

5.8% 6.0% 6.3% 6.4% 6.7%

56.0% 57.4% 57.1% 54.6%61.6%

0%

5%

10%

15%

20%

25%

30%


20%

40%

60%

80%

100%


Migration analysis - Segment GCIB

65.4% 65.5% 67.9% 72.6% 73.3%

24.1% 24.5% 22.8% 17.3%4.7% 4.1% 2.9% 2.5% 2.7%5.8% 6.0% 6.3%

18.5%

6.7%6.4%

0%

20%

40%

60%

80%

100%


30 April 2012London

Q1 2012 results3939

Segment Group Markets – Net profit increased in an improved environment

in EUR million 1-3 12 1-3 11 ChangeNet interest income 46.1 24.6 87.4%Net fee income 35.0 36.3 (3.6%)Net trading result 81.4 95.5 (14.8%)Operating expenses (57.5) (61.6) (6.7%)Operating result 105.0 94.8 10.8%Risk provisions 0.0 0.0 na Other result (1.0) 3.5 na Net profit/loss 81.0 73.8 9.8%

in EUR million Q1 12 Q4 11 ChangeNet interest income 46.1 98.0 (53.0%)Net fee income 35.0 27.7 26.4%Net trading result 81.4 (2.2) na Operating expenses (57.5) (64.7) (11.1%)Operating result 105.0 58.8 78.6%Risk provisions 0.0 (12.0) na Other result (1.0) 0.7 na Net profit/loss 81.0 32.5 >100.0%

−

Operating result improved on increased net interest income

−

NII increased on shifting interest income on trading securities starting in Q4 2011 and on higher income from government bonds and CEE swaps

−

Fee income slightly down on reduced asset management business

−

Operating expenses declined as a result of cost cutting measures across all business lines

−

Net trading result down primarily due to shift of interest income on trading securities to NII

−

Fixed income desk, Hungary and Slovakia contributed positively to otherwise strong trading result in Q1 12

−

Net profit up yoy as a result of lower expenses and increased operating income

−

CIR went down to 35.4% (39.4% in Q1 11)

30 April 2012London

Q1 2012 results4040

Segment Corporate Center – Buy-back of own issues drove net profit

in EUR million 1-3 12 1-3 11 ChangeNet interest income 57.4 13.8 >100.0%Net fee income (18.8) (24.8) (24.2%)Net trading result (38.9) 3.0 na Operating expenses (33.6) (28.7) 17.1%Operating result (33.9) (36.7) (7.6%)Risk provisions 0.0 0.0 na Other result 212.6 (47.8) na Net profit/loss 172.8 (59.2) na

in EUR million Q1 12 Q4 11 ChangeNet interest income 57.4 10.7 >100.0%Net fee income (18.8) (32.5) (42.2%)Net trading result (38.9) 63.3 na Operating expenses (33.6) (39.7) (15.4%)Operating result (33.9) 1.8 na Risk provisions 0.0 0.0 na Other result 212.6 (49.2) na Net profit/loss 172.8 (58.6) na

−

What is in the Corporate Center?−

Business areas which cannot be allocated to relevant business lines, one-offs, amortisation of customer relationships and Group ALM

−

NII substantially improved on structural contribution from asset/liability management in Q1 2012

−

The positive development of fee income and the increase in operating expenses were largely attributable to consolidation effects from banking support operations

−

Net trading swung to a loss in Q1 12 due to valuation effects of hedging instruments in ALM

−

Other result:−

Amortisation of customer relationships of EUR 16.8m−

Increased Austrian banking tax of EUR 36.7m−

Proceeds from buy-back of hybrids and LT2 of EUR 250.6m

30 April 2012London

Q1 2012 results4141

Retail & SME: Austria/EB Oesterreich – Positive long term trend continued in Q1 2012

in EUR million 1-3 12 1-3 11 ChangeNet interest income 161.7 152.9 5.8%Net fee income 82.7 82.0 0.9%Net trading result (3.1) 2.5 na Operating expenses (151.4) (149.8) 1.1%Operating result 89.9 87.6 2.6%Risk provisions (31.4) (35.0) (10.3%)Other result 8.6 (0.7) na Net profit/loss 50.5 39.1 29.2%

in EUR million Q1 12 Q4 11 ChangeNet interest income 161.7 164.1 (1.5%)Net fee income 82.7 81.5 1.5%Net trading result (3.1) 10.4 na Operating expenses (151.4) (154.9) (2.3%)Operating result 89.9 101.1 (11.1%)Risk provisions (31.4) (8.7) >100.0%Other result 8.6 (29.5) na Net profit/loss 50.5 49.4 2.2%

−

Operating result increased year-over-year−

NII improved on increased deposit volume and fractionally higher margins

−

Customer deposits increased by 2.8% ytd−

Fee income stable yoy, but negative impact from securities gain tax introduced in 2011 still visible in securities business

−

Net trading was negative in 1-3 2012 on derivatives valuation

−

Operating expenses increased only by 1.1% yoy due to first time consolidation of a subsidiary in Q3 2011

−

Annualised risk costs down yoy to 44bps on improved delinquencies across all business lines

−

Q4 2011 affected by one-off release in risk provisions−

NPL ratio stable at 3.8% as of Mar 2012

−

Positive other result driven by selling gains on financial assets available-for-sale

−

Selling gains AfS portfolio (EUR + 8.5m) and part of the increased Austrian banking tax allocated to segment (EUR - 2.3m) were main factors

−

Another record quarterly net profit

−

CIR at 62.7% in 1-3 2012 (63.1% in 1-3 2011)

−

Segment ROE of 15.4%

30 April 2012London

Q1 2012 results4242

Retail & SME: Austria/EB Oesterreich – Loan book analysis

Segment EB Oesterreich -Customer loans by Basel II customer segment

11.6 11.8 11.8 11.8 11.8

2.6 2.7 2.7 2.7 2.7

11.3 11.7 11.8 11.7

1.7 1.7 1.7 1.8 1.827.1 27.5 28.0 28.2 28.1

11.1

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Segment EB Oesterreich -Customer loans by currency

82.8% 82.2% 82.6% 83.7% 84.0%

15.4% 16.0% 15.4% 14.4% 14.2%1.8% 1.7% 2.0% 1.8%1.9%

0%

20%

40%

60%

80%

100%

Mar 11 Jun 11 Sep 11 Dec 11 Mar 12EUR CHF Other

Segment Erste Bank Oesterreich - NPL ratio vs NPL coverage

4.0% 3.8% 3.6% 3.7% 3.8%

64.0% 65.9% 69.6% 65.4% 66.5%

0%

5%

10%

15%

20%

25%

30%


20%

40%

60%

80%

100%


Migration analysis - Retail & SME/EB Oesterreich

85.5% 85.9% 86.0% 86.0% 86.2%

9.4% 9.3% 9.5% 9.2%1.1% 1.0% 1.0% 1.0% 0.8%4.0% 3.8% 3.6%9.3%3.7% 3.8%

0%

20%

40%

60%

80%

100%


30 April 2012London

Q1 2012 results4343

−

Operating result increased slightly year-on-year−

NII up on improved loan and deposit volumes−

Net fee income mildly decreased yoy mainly on declining securities business

−

Costs increased by only 0.9% yoy on ongoing cost containment

−

Annualized risk costs down to 53 bps in Q1 2012−

NPL ratio stood at 6.9% as of Mar 2012−

NPL coverage very stable for several quarters at around 60% (YE 11: 59.7%)

−

Other result was a negative EUR 12.0m−

Main driver was realized losses on AfS securities−

Other result improved considerably compared to Q4 2011 as financial assets valuation changed for the better

−

Pre-tax profit increased mainly on lower risk costs

−

Year-over-year CIR was flat at 68.5%

Retail & SME: Austria/Savings banks – Solid operating performance

in EUR million Q1 12 Q4 11 ChangeNet interest income 240.9 273.6 (12.0%)Net fee income 98.7 99.7 (1.0%)Net trading result 3.9 14.3 (72.7%)Operating expenses (235.4) (228.0) 3.2%Operating result 108.1 159.6 (32.3%)Risk provisions (51.3) (60.4) (15.1%)Other result (12.0) (32.4) (63.0%)Net profit/loss 2.9 5.4 (46.3%)

in EUR million 1-3 12 1-3 11 ChangeNet interest income 240.9 234.1 2.9%Net fee income 98.7 100.8 (2.1%)Net trading result 3.9 5.6 (30.4%)Operating expenses (235.4) (233.4) 0.9%Operating result 108.1 107.1 0.9%Risk provisions (51.3) (62.1) (17.4%)Other result (12.0) (6.8) 76.5%Net profit/loss 2.9 1.9 52.6%

30 April 2012London

Q1 2012 results4444

Retail & SME: Austria/Savings banks – Loan book analysis

Segment Savings banks -Customer loans by currency

77.6% 76.6% 77.0% 77.7% 78.2%

19.2% 20.1% 19.6% 18.9% 18.5%3.2% 3.2% 3.5% 3.4% 3.4%

0%

20%

40%

60%

80%

100%

Mar 11 Jun 11 Sep 11 Dec 11 Mar 12EUR CHF Other

Migration analysis - Retail & SME/Savings Banks

73.5% 73.6% 73.5% 73.6% 73.6%

16.8% 16.9% 16.8% 16.7%2.6% 2.6% 2.6% 2.7% 2.8%7.1% 7.0% 7.0%

16.8%

6.9%6.9%

0%

20%

40%

60%

80%

100%


Segment Savings banks - NPL ratio vs NPL coverage

7.1% 7.0% 7.0% 6.9% 6.9%

59.5% 59.6% 59.2% 59.7% 60.0%

0%

5%

10%

15%

20%

25%

30%


20%

40%

60%

80%

100%


Segment Savings Banks -Customer loans by Basel II customer segment

12.7 13.1 13.0 13.0 12.9

6.8 6.9 6.8 6.8 6.8

16.1 16.2 16.2 16.1

1.7 1.6 1.6 1.6 1.637.0 37.7 37.7 37.6 37.4

15.8

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30 April 2012London

Q1 2012 results4545

Retail & SME: Czech Republic – Record quarterly net profit in Q1 2012

−

Operating result decreased somewhat on lower fee and commission income in 1-3 2012

−

NII slightly down on currency depreciation but increased in local currency by 2.3%

−

Net fee income declined on decreased payment and securities business

−

Net trading result contributed positively in Q1 2012, after weak Q4 2011

−

Operating expenses down due to ongoing focus on cost cutting across all business lines

−

Annualized risk costs decreased substantially to 100bps in 1-3 2012 vs 158bps in 1-3 2011

−

Improvement driven by reduced delinquencies in retail as well as corporate businesses

−

NPL ratio of 5.6% compared to 5.5% at YE 2011−

NPL coverage improved to 71%

−

Other result improved markedly yoy and qoq−

Positive contribution from financial assets −

Deposit insurance contribution remained a key negative factor

−

Record quarterly net profit as result of solid operating result, lower risk costs and improved other result

−

CIR stayed flat at 43.6%

in EUR million 1-3 12 1-3 11 ChangeNet interest income 282.6 284.4 (0.6%)Net fee income 112.2 124.7 (10.0%)Net trading result 16.7 15.5 7.7%Operating expenses (179.5) (185.1) (3.0%)Operating result 232.0 239.5 (3.1%)Risk provisions (44.5) (70.9) (37.2%)Other result (1.0) (7.7) (87.0%)Net profit/loss 144.3 127.4 13.3%

in EUR million Q1 12 Q4 11 ChangeNet interest income 282.6 283.0 (0.1%)Net fee income 112.2 124.1 (9.6%)Net trading result 16.7 (26.3) na Operating expenses (179.5) (170.2) 5.5%Operating result 232.0 210.6 10.2%Risk provisions (44.5) (21.9) >100.0%Other result (1.0) (7.7) (87.0%)Net profit/loss 144.3 133.3 8.3%

All figures including 2.9% currency depreciation (based on 1-3 2012 average rate)

30 April 2012London

Q1 2012 results4646

Retail & SME: Czech Republic – Loan book analysis

Segment Czech Republic -Customer loans by Basel II customer segment

10.0 10.2 10.0 9.6 10.1

1.7 1.7 1.7 1.6 1.6

5.5 5.6 5.3 5.5

0.8 0.8 0.6 0.7 0.718.0 18.1 17.9 17.2 17.8

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Segment Czech Republic -Customer loans by currency

96.5% 96.5% 96.3% 96.0% 96.4%

3.3% 3.3% 3.4% 3.7% 3.4%0.2% 0.2% 0.3% 0.2%0.3%

0%

20%

40%

60%

80%

100%

Mar 11 Jun 11 Sep 11 Dec 11 Mar 12CZK EUR Other

Segment Czech Republic - Migration analysis

74.3% 73.3% 72.4% 74.1% 74.7%

16.0% 17.2% 18.0% 16.6%3.5% 3.2% 3.2% 3.0% 3.0%6.1% 6.4% 6.4%

17.4%

5.6%5.5%

0%

20%

40%

60%

80%

100%


Segment Czech Republic - NPL ratio vs NPL coverage

6.1% 6.4% 6.4% 5.5% 5.6%

72.3% 72.5% 71.3% 69.7% 71.0%

0%

5%

10%

15%

20%

25%

30%


20%

40%

60%

80%

100%


30 April 2012London

Q1 2012 results4747

Retail & SME: Romania – Additional risk provisions led to increased coverage ratio

in EUR million 1-3 12 1-3 11 ChangeNet interest income 153.0 186.0 (17.7%)Net fee income 30.2 34.7 (13.0%)Net trading result 16.9 1.1 >100.0%Operating expenses (89.7) (98.8) (9.2%)Operating result 110.4 123.0 (10.2%)Risk provisions (191.4) (109.4) 75.0%Other result (7.9) (12.2) (35.2%)Net profit/loss (72.2) 0.7 na

in EUR million Q1 12 Q4 11 ChangeNet interest income 153.0 154.7 (1.1%)Net fee income 30.2 32.6 (7.4%)Net trading result 16.9 10.1 67.3%Operating expenses (89.7) (93.7) (4.3%)Operating result 110.4 103.7 6.5%Risk provisions (191.4) (125.6) 52.4%Other result (7.9) 10.4 na Net profit/loss (72.2) (3.1) >100.0%

−

Operating result decreased on lower NII and fee income, but lower costs and strong trading mitigated decline in Q1 2012

−

Decrease in loan demand and lower margins led to declining NII

−

Fees declined on lower payment transfers and insurance business

−

Net trading result increased mainly on improved valuations−

Restructuring efforts led to decline in operating costs

−

Risk provisions nearly doubled on additional charge of EUR 98.6m which resulted in increased NPL coverage ratio

−

NPL ratio increased to 24.3% on increased defaults in Local Corporate business

−

Coverage improved to 52.2% from 50.1% at YE 2011

−

Other result improved yoy on positive contribution from financial assets

−

CIR was stable at 44.8% 1-3 2012


30 April 2012London

Q1 2012 results4848

Retail & SME: Romania – Loan book analysis

Segment Romania -Customer loans by Basel II customer segment

4.7 4.6 4.7 4.7 4.7

0.8 0.7 0.8 0.8 0.8

4.3 4.4 4.4 4.4

1.5 1.5 1.1 1.3 1.2

11.3 11.1 11.0 11.2 11.1

4.4

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Segment Romania - Customer loans by currency

38.5% 38.3% 38.4% 37.7% 37.2%

60.1% 60.4% 59.9% 60.6% 61.1%

1.4% 1.3% 1.7% 1.7%1.7%

0%

20%

40%

60%

80%

100%

Mar 11 Jun 11 Sep 11 Dec 11 Mar 12RON EUR Other

Segment Romania - Migration analysis

45.7% 43.6% 42.7% 42.2% 45.0%

19.3% 24.7% 28.0% 24.7%

16.8% 12.6% 7.3% 6.4% 6.0%

18.3% 19.2% 22.0%

28.7%

24.3%22.7%

0%

20%

40%

60%

80%

100%


Segment Romania - NPL ratio vs NPL coverage

19.2%22.0%

24.3%22.7%18.3%

56.4% 52.6% 51.1% 52.2%50.1%

0%5%

10%15%20%25%30%35%


15%

30%

45%

60%

75%


30 April 2012London

Q1 2012 results4949

Retail & SME: Slovakia – Continuous solid operating result

−

Operating result slightly down against strong 1-3 2011−

NII slightly decreased on adjusted investment strategy−

Fees were stable year-over-year−

Net trading contributed positively, but remained insignificant−

Operating costs up on increased depreciation of new core banking system which went live in Q3 11

−

NIM was 4.2% in 1-3 12 compared to 4.4% in 1-3 11

−

Risk costs declined year-over-year−

Annualized risk costs declined to 119bps, driven by economic improvement

−

NPL coverage traditionally high at 80.9%

−

Other result: positive one-off items, mainly financial assets valuation and selling gains partially compensated for banking tax (EUR -3.5m) and deposit insurance (EUR -3.4m) in Q1 2012

−

Quarterly net profit still very satisfactory but slightly below Q1 2011

−

CIR up to 42.6% vs 40.1% 1-3 2011

−

Housing loans continued to be main driver of volume growth in Q1 12

in EUR million 1-3 12 1-3 11 ChangeNet interest income 106.4 109.3 (2.7%)Net fee income 27.7 27.9 (0.7%)Net trading result 2.1 0.8 >100.0%Operating expenses (58.0) (55.3) 4.9%Operating result 78.2 82.7 (5.4%)Risk provisions (18.5) (20.8) (11.1%)Other result (5.4) (5.0) 8.0%Net profit/loss 43.3 45.4 (4.6%)

in EUR million Q1 12 Q4 11 ChangeNet interest income 106.4 111.3 (4.4%)Net fee income 27.7 28.9 (4.2%)Net trading result 2.1 (0.7) na Operating expenses (58.0) (57.4) 1.0%Operating result 78.2 82.1 (4.8%)Risk provisions (18.5) (16.9) 9.5%Other result (5.4) (8.4) (35.7%)Net profit/loss 43.3 47.7 (9.2%)

30 April 2012London

Q1 2012 results5050

Segment Slovakia -Customer loans by currency

99.6% 99.6% 99.6% 99.7% 99.9%

0.4% 0.4% 0.4% 0.3% 0.1%

0%

20%

40%

60%

80%

100%

Mar 11 Jun 11 Sep 11 Dec 11 Mar 12EUR (LCY) Other

Retail & SME: Slovakia – Loan book analysis

Segment Slovakia -Customer loans by Basel II customer segment

4.0 4.1 4.2 4.4 4.4

0.3 0.3 0.3 0.3 0.31.4 1.4 1.3 1.2

0.1 0.1 0.1 0.2 0.35.8 5.9 6.0 6.2 6.3

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Segment Slovakia - NPL ratio vs NPL coverage

7.8% 7.7% 7.6% 8.0% 8.0%

84.6% 85.4% 85.4%79.2% 80.9%

0%

5%

10%

15%

20%

25%

30%


20%

40%

60%

80%

100%


Migration analysis - Retail & SME/Slovakia

79.1% 75.9% 73.6% 75.0% 75.4%

8.4% 12.4% 14.9% 13.2%4.7% 4.0% 3.8% 3.5% 3.4%7.8% 7.7% 7.6%

13.6%

8.0%8.0%

0%

20%

40%

60%

80%

100%


30 April 2012London

Q1 2012 results5151

Retail & SME: Hungary – Unorthodox policies still affecting EB Hungary’s result

in EUR million 1-3 12 1-3 11 ChangeNet interest income 81.7 93.0 (12.2%)Net fee income 21.9 22.8 (3.9%)Net trading result 5.6 3.8 47.4%Operating expenses (41.5) (49.6) (16.3%)Operating result 67.7 70.0 (3.3%)Risk provisions (131.1) (77.3) 69.6%Other result (16.3) (21.6) (24.5%)Net profit/loss (81.8) (31.7) >100.0%

in EUR million Q1 12 Q4 11 ChangeNet interest income 81.7 99.6 (18.0%)Net fee income 21.9 24.0 (8.8%)Net trading result 5.6 4.9 14.3%Operating expenses (41.5) (42.4) (2.1%)Operating result 67.7 86.1 (21.4%)Risk provisions (131.1) (110.7) 18.4%Other result (16.3) 0.4 na Net profit/loss (81.8) (34.9) >100.0%

−

Operating result held up despite decreasing revenues on cost cutting efforts; currency adjusted up 5.3% yoy

−

NII declined on portfolio reduction as effect of FX conversion law

−

Fee income up on currency adjusted basis; Insurance and building society compensated for lower lending fees

−

Net trading result up on FX loan conversions −

Successful restructuring measures led to lower operating costs

−

Other result improved due to lower extraordinary items in Q1 2012

−

Risk costs increased on extraordinary provisions (EUR 75.6m) relating to the interest subsidy scheme for performing FX loans imposed by legislation

−

NPL ratio increased to 23.5% on deteriorating economic environment

−

NPL coverage declined as expected from 70.3% at YE 11 to 68.4% at Mar 2012

−

Net loss due to additional risk costs covering interest subsidy scheme for performing FX borrowers for full 5 years

−

CIR improved to 38.0% vs 41.5% in Q1 2011


30 April 2012London

Q1 2012 results5252

Retail & SME: Hungary – Loan book analysis

Segment Hungary -Customer loans by Basel II customer segment

4.8 5.0 4.9 4.5 4.3

0.1 0.1 0.1 0.1 0.1

2.3 2.32.1 2.1

0.4 0.4 0.40.4 0.4

7.6 7.9 7.77.1 6.9

2.3

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Segment Hungary - Customer loans by currency

25.8% 26.3% 25.9% 26.2% 29.0%

53.2% 53.9% 53.5% 51.6% 48.5%

20.7% 19.7% 20.5%0.3% 0.1% 0.1% 0.2% 0.2%

22.3%22.0%

0%

20%

40%

60%

80%

100%

Mar 11 Jun 11 Sep 11 Dec 11 Mar 12HUF CHF EUR Other

Segment Hungary - NPL ratio vs NPL coverage

13.5%15.5% 16.5%

21.1% 23.5%52.2% 50.3%

85.6%70.3% 68.4%

0%

5%

10%

15%

20%

25%

30%


20%

40%

60%

80%

100%


Migration analysis - Retail & SME/Hungary

61.1% 57.0% 55.1% 48.8% 46.0%

17.3% 21.5% 22.4%23.5%

8.2% 6.0% 5.9%7.2% 6.9%

13.5% 15.5% 16.5%

22.8%

23.5%21.1%

0%

20%

40%

60%

80%

100%


30 April 2012London

Q1 2012 results5353

Retail & SME: Croatia – Solid operating result impaired by increase in risk costs

in EUR million 1-3 12 1-3 11 ChangeNet interest income 64.1 61.3 4.6%Net fee income 15.8 17.0 (7.1%)Net trading result 2.2 3.5 (37.1%)Operating expenses (33.6) (35.7) (5.9%)Operating result 48.5 46.1 5.2%Risk provisions (32.2) (23.2) 38.8%Other result (2.3) (1.8) 27.8%Net profit/loss 6.1 11.2 (45.5%)

in EUR million Q1 12 Q4 11 ChangeNet interest income 64.1 67.1 (4.5%)Net fee income 15.8 18.2 (13.2%)Net trading result 2.2 3.8 (42.1%)Operating expenses (33.6) (32.8) 2.4%Operating result 48.5 56.3 (13.9%)Risk provisions (32.2) (37.0) (13.0%)Other result (2.3) (3.2) (28.1%)Net profit/loss 6.1 6.0 1.7%

−

Operating result improved on higher NII 1-3 2012−

NII improved mainly on increased financial assets−

Lower fee income due to transfer of credit card processing subsidiary (MBU) in Q3 11

−

Net trading result decreased on lower contribution from ALM

−

NIM declined to 3.6% in Q1 12 against 3.8% in Q1 2011

−

Decrease in operating costs on successful cost management and transfer of credit card processing unit

−

Risk provisions up mainly due to deterioration in corporate segment

−

Annualized risk cost increased from 166bps in Q1 2011 to 219bps in Q1 2012

−

NPL ratio increased to 14.1% as of Mar 2012 compared to 12.8% at YE 2011

−

Other result decreased yoy due to positive effect on sale of premises in Q1 2011

−

CIR improved to 40.9% vs 43.6% in Q1 2011

−

ROE of 8.1% vs 17.5% in Q1 2011


30 April 2012London

Q1 2012 results545454

Retail & SME: Croatia – Loan book analysis

Segment Croatia -Customer loans by Basel II customer segment

2.4 2.6 2.6 2.6 2.6

0.3 0.2 0.2 0.2 0.2

2.5 2.4 2.5 2.5

0.5 0.5 0.6 0.7 0.75.6 5.8 5.8 5.9 6.0

2.4

0

2

4

6


in E

UR

bill

ion


Segment Croatia - Customer loans by currency

20.6% 19.8% 20.1% 20.2% 20.2%

65.1% 65.7% 66.0% 66.5% 66.8%

14.1% 14.2% 13.6%0.2% 0.2% 0.3% 0.3% 0.2%

13.0% 12.8%

0%

20%

40%

60%

80%

100%

Mar 11 Jun 11 Sep 11 Dec 11 Mar 12HRK EUR CHF Other

Segment Croatia - NPL ratio vs NPL coverage

11.3% 12.0% 12.1% 12.8% 14.1%

57.3% 55.0% 56.1% 55.2% 52.3%

0%

5%

10%

15%

20%

25%

30%


20%

40%

60%

80%


Migration analysis - Retail & SME/Croatia

60.0% 55.8% 53.0% 52.1% 51.5%

24.8% 25.5% 28.1% 27.7%

3.9% 6.6% 6.8% 7.2% 6.7%

11.3% 12.0% 12.1%

28.0%

12.8% 14.1%

0%

20%

40%

60%

80%

100%


30 April 2012London

Q1 2012 results5555

Retail & SME: Serbia – Operating performance improved significantly yoy

in EUR million 1-3 12 1-3 11 ChangeNet interest income 8.7 8.6 1.2%Net fee income 3.5 2.7 29.6%Net trading result 0.4 0.0 na Operating expenses (8.3) (8.2) 1.2%Operating result 4.3 3.1 38.7%Risk provisions (2.2) (2.0) 10.0%Other result (0.3) (0.3) 0.0%Net profit/loss 1.3 0.5 >100.0%

in EUR million Q1 12 Q4 11 ChangeNet interest income 8.7 9.3 (6.5%)Net fee income 3.5 4.0 (12.5%)Net trading result 0.4 (0.2) na Operating expenses (8.3) (8.7) (4.6%)Operating result 4.3 4.4 (2.3%)Risk provisions (2.2) (3.2) (31.3%)Other result (0.3) (0.3) 0.0%Net profit/loss 1.3 0.4 >100.0%

−

Operating result up on higher net fee income and upbeat trading result

−

NII up on loan and deposit growth−

Margins in retail business developed positively−

Fee income improved mainly on growth in payment business−

Trading result increased due to favourable FX movements

−

NIM was down to 6.7% in 1-3 2012

−

Costs increased on new customer protection law

−

Risk provisions up on strong growth in loans−

Annualised risk costs down to 181bps vs 186bps in 1-3 2011

−

Net profit contribution increased considerably in Q1 2012

−

Segment ROE of 12.4%

−

CIR was 65.9% in 1-3 2012 (1-3 2011: 72.6%)


30 April 2012London

Q1 2012 results5656

Retail & SME: Serbia – Loan book analysis

Segment Serbia - Customer loans by currency

28.3% 27.0% 23.0% 23.9% 22.7%

66.6% 68.0% 72.2% 71.4% 72.6%

4.1% 4.1% 3.9%1.0% 0.9% 0.9% 0.9% 0.9%3.8%3.8%

0%

20%

40%

60%

80%

100%


RSD EUR CHF Other

Segment Serbia/retail - NPL ratio vs NPL coverage

10.7% 10.8% 11.2% 11.9% 12.3%

99.7% 99.5% 93.3% 89.9% 90.5%

0%

5%

10%

15%

20%

25%

30%


20%

40%

60%

80%

100%

120%


Segment Serbia -Customer loans by Basel II customer segment

171.8 186.0 194.9 188.1 192.6

8.2 8.1 8.0 8.1 8.5

265.3 274.9 286.5 277.9

2.2 2.2 2.5 2.8 3.4436.0 461.7 480.3 485.6 482.4

253.8

0

200

400

600


in E

UR

mill

ion


Migration analysis - Retail & SME/Serbia

70.4% 69.4% 67.1% 65.1% 64.3%

17.1% 16.4% 18.9% 20.9%

1.9% 3.4% 2.8% 2.7% 2.4%10.7% 10.8% 11.2%

20.3%

11.9% 12.3%

0%

20%

40%

60%

80%

100%


30 April 2012London

Q1 2012 results5757

Retail & SME: Ukraine – Rightsizing still ongoing

in EUR million 1-3 12 1-3 11 ChangeNet interest income 6.0 6.3 (4.8%)Net fee income 1.2 1.0 20.0%Net trading result 0.5 4.2 (88.1%)Operating expenses (12.0) (11.9) 0.8%Operating result (4.3) (0.4) >100.0%Risk provisions (2.8) (3.5) (20.0%)Other result (1.1) 2.0 na Net profit/loss (8.2) (1.9) >100.0%

in EUR million Q1 12 Q4 11 ChangeNet interest income 6.0 14.3 (58.0%)Net fee income 1.2 1.2 (0.0%)Net trading result 0.5 (8.9) na Operating expenses (12.0) (12.9) (7.0%)Operating result (4.3) (6.3) (31.7%)Risk provisions (2.8) (3.6) (22.2%)Other result (1.1) (1.6) (31.3%)Net profit/loss (8.2) (11.0) (25.5%)

−

Operating result down on weak trading in 1-3 2012−

NII down on higher funding costs and lower income on financial assets

−

Net fee income improved marginally on the back of increased payment transfers

−

Net trading result down due to lower income from securities trading and FX transactions

−

Operating expenses nearly flat

−

Risk costs declined yoy on sufficient NPL coverage −

Annualised risk costs down to 239bps against 302bps in 1-3 2011 on lower provisions for corporate customers

−

NPL ratio slightly declined to 32.8% as of Mar 2012

−

Other result deteriorated yoy due to selling losses on financial assets available for sale

−

Net loss increased due weak trading and the deterioration in other result

−

CIR was 155.8% in 1-3 2012

All figures including 3.2% currency appreciation (based on 1-3 2012 average rate)

30 April 2012London

Q1 2012 results5858

Retail & SME: Ukraine – Loan book analysis

Segment Ukraine -Customer loans by Basel II customer segment

273.0 257.1 287.4 286.6 253.4

106.6 119.9140.6 156.7

12.9

64.151.0 50.3

171.00.0 0.0 0.0 3.2

3.0443.7 441.1 479.0 496.7

440.364.0

0

200

400

600

800


in E

UR

mill

ion


Segment Ukraine - Customer loans by currency

14.3% 18.5% 18.6% 22.9% 25.2%

84.3% 80.2% 80.2% 75.6% 73.0%

1.4% 1.3% 1.2% 1.8%1.5%

0%

20%

40%

60%

80%

100%

Mar 11 Jun 11 Sep 11 Dec 11 Mar 12UAH USD Other

Segment Ukraine/retail - NPL ratio vs NPL coverage

30.3% 29.9%32.5% 32.8%

35.3%104.4% 106.7%

83.1%95.3%

88.1%

20%

25%

30%

35%

40%


50%

100%

150%


Migration analysis - Retail & SME/Ukraine

24.2% 15.1% 12.8% 16.6%

42.8%

35.8%31.6% 31.9%

17.7%

9.7%23.4% 20.0% 20.4%

6.8%

30.3% 29.9% 35.3%

30.6%

32.8%32.5%

0%

20%

40%

60%

80%

100%


30 April 2012London

Q1 2012 results5959

Presentation topics

−


−


−

Credit risk

−

Funding

−

Capital

−

Outlook

−

Appendix

−

Segments−

Asset quality−




30 April 2012London

Q1 2012 results6060

Asset quality analysis – Key definitions

−

Key asset quality indicators are based on on-balance sheet customer loans

−

Reported NPL and NPL coverage ratios exclude collateral

−

Broad NPL definition−

90-day overdue or less than 90-day overdue if:

−

Customer unlikely to pay, e.g. because customer defaulted against third party

−

Customer view instead of product view has been adopted. The former is the case with all corporate customers and all retail customers in Austria. In CEE retail product view prevails. Accordingly, if an Austrian retail customer defaults on one product all performing products are classified as NPLs as well.

Risk category Agency ratings

Low risk AAA to BB /Aaa to Ba

Management attention B

Substandard CCC to C / Caa to C

Non-performing D, R, RD, SD

30 April 2012London

Q1 2012 results6161

Asset quality analysis – Loan book overview

Customer loans by Basel II customer segments

50.7 51.9 51.9 51.2 51.3

13.4 13.4 13.4 13.2 13.0

61.0 62.4 62.1 62.5

7.7 7.8 7.6 8.2 8.0132.8 134.1 135.2 134.7 134.8

61.0

0

30

60

90

120

150


in E

UR

bill

ion

Retail - Private individuals Retail - Micros Corporate Municipalities

Customer loans by reporting segment

27.9% 28.1% 27.9% 27.9% 27.8%

20.4% 20.5% 20.7% 20.9% 20.8%

14.2% 13.9% 14.3% 14.7% 14.7%

13.6% 13.5% 13.3% 12.8% 13.2%8.5% 8.3% 8.2% 8.3% 8.2%5.8% 5.9% 5.7% 5.3% 5.1%

0%10%20%30%40%50%60%70%80%90%

100%

Mar 11 Jun 11 Sep 11 Dec 11 Mar 12Austria - SBs Austria - EBOe GCIB Czech RepRomania Hungary Slovakia CroatiaUkraine Serbia Global Markets Corp Center

Customer loans by industries

38.7%

15.6%

3.9% 5.9%3.1%

4.8%

5.1%

8.0%7.0%

5.1%2.8%

Households Real estate & housing ManufacturingTrade Financial services ConstructionPublic administration Transport & comms Hotels & restaurantsServices Other

Customer loans by currency

64.2% 63.8% 64.4%

19.7% 19.6% 19.3% 18.6% 19.3%

12.4% 12.9% 12.5% 11.9% 11.4%2.1% 2.0% 2.1% 2.0% 1.8%

65.6% 65.6%

0%

20%

40%

60%

80%

100%

Mar 11 Jun 11 Sep 11 Dec 11 Mar 12EUR CEE-LCY CHF USD Other

30 April 2012London

Q1 2012 results6262

Asset quality analysis – Loan book by segments

Mar 12 Dec 11 Mar 12 Dec 11 Mar 12 Dec 11 Mar 12 Dec 11 Mar 12 Dec 11 Mar 12 Dec 11 Mar 12 Dec 11 Mar 12 Dec 11

Retail & SME 81,513 80,952 18,798 19,513 3,616 3,779 10,518 10,112 114,446 114,355 6,510 6,244 61.9% 61.7% 9.2% 8.8%

Austria 51,726 51,910 8,807 8,948 1,289 1,287 3,658 3,658 65,481 65,803 2,265 2,245 61.9% 61.4% 5.6% 5.6%

Erste Bank Oesterreich 24,199 24,248 2,577 2,630 232 270 1,063 1,051 28,070 28,199 707 688 66.5% 65.4% 3.8% 3.7%

Savings Banks 27,527 27,662 6,231 6,318 1,058 1,018 2,595 2,607 37,411 37,604 1,558 1,557 60.0% 59.7% 6.9% 6.9%

Central and Eastern Europe 29,787 29,042 9,991 10,565 2,327 2,491 6,860 6,454 48,964 48,552 4,245 3,999 61.9% 62.0% 14.0% 13.3%

Czech Republic 13,328 12,733 2,968 2,997 535 511 1,002 947 17,833 17,187 712 660 71.0% 69.7% 5.6% 5.5%

Romania 4,987 4,709 2,739 3,204 667 714 2,689 2,533 11,082 11,160 1,404 1,268 52.2% 50.1% 24.3% 22.7%

Slovakia 4,731 4,661 832 845 212 215 503 496 6,278 6,217 407 393 80.9% 79.2% 8.0% 8.0%

Hungary 3,167 3,461 1,619 1,615 473 513 1,618 1,499 6,877 7,088 1,107 1,054 68.4% 70.3% 23.5% 21.1%

Croatia 3,075 3,080 1,654 1,654 398 424 844 759 5,971 5,917 441 419 52.3% 55.2% 14.1% 12.8%

Serbia 310 316 101 99 12 13 60 58 482 486 54 52 90.5% 89.9% 12.3% 11.9%

Ukraine 188 82 78 152 30 101 144 161 440 497 120 154 83.1% 95.3% 32.8% 32.5%

GCIB 14,503 14,376 3,427 3,663 528 490 1,332 1,275 19,790 19,805 820 697 61.6% 54.6% 6.7% 6.4%

Group Markets 198 204 8 20 0 0 0 0 206 225 1 0 >100.0% >100.0% 0.0% 0.0%

Corporate Center 258 313 78 36 15 15 1 1 352 365 1 1 >100.0% >100.0% 0.2% 0.1%

Total group 96,472 95,845 22,311 23,233 4,160 4,284 11,851 11,388 134,793 134,750 7,407 7,027 61.9% 61.0% 8.8% 8.5%

Low risk Mgmt attention Substandard Non-performing NPL ratioNPL coverageTotal loan book Risk provisions

30 April 2012London

Q1 2012 results6363

Asset quality analysis – Loan book by region (country of origination)

in EUR million Mar 12 Dec 11 Mar 12 Dec 11 Mar 12 Dec 11 Mar 12 Dec 11

Core market 90,019 89,007 20,959 21,768 3,968 4,078 10,978 10,543 125,924 93.4% 125,397 93.1%Austria 53,187 53,304 8,095 8,231 1,088 1,081 3,124 3,162 65,495 48.6% 65,778 48.8%Croatia 4,082 3,959 2,076 2,224 418 432 1,047 968 7,623 5.7% 7,583 5.6%Romania 5,840 5,569 3,497 4,065 831 840 2,910 2,756 13,079 9.7% 13,229 9.8%Serbia 571 496 232 235 12 14 71 69 886 0.7% 815 0.6%Slovakia 5,434 5,313 1,050 1,059 237 235 558 532 7,279 5.4% 7,140 5.3%Slovenia 980 1,010 192 195 117 165 284 228 1,573 1.2% 1,598 1.2%Czech Republic 15,766 15,063 3,629 3,458 611 595 1,077 1,012 21,082 15.6% 20,128 14.9%Hungary 3,967 4,205 1,804 1,798 543 584 1,705 1,589 8,020 5.9% 8,176 6.1%Ukraine 193 87 384 503 109 132 203 228 889 0.7% 950 0.7%

Other EU 4,357 4,585 957 1,037 86 84 584 561 5,984 4.4% 6,267 4.7%Other industrialised countries 776 876 132 191 34 36 104 107 1,046 0.8% 1,210 0.9%Emerging markets 1,320 1,376 263 237 72 85 184 177 1,839 1.4% 1,875 1.4%

Southeastern Europe / CIS 882 898 229 197 32 44 145 142 1,289 1.0% 1,280 1.0%Asia 198 216 10 13 38 40 19 22 264 0.2% 291 0.2%Latin America 97 117 5 5 2 2 6 6 109 0.1% 130 0.1%Middle East / Africa 143 145 19 22 0 0 14 7 177 0.1% 174 0.1%

Total 96,472 95,845 22,311 23,233 4,160 4,284 11,851 11,388 134,793 100.0% 134,750 100.0%Share of total 71.6% 71.1% 16.6% 17.2% 3.1% 3.2% 8.8% 8.5% 100.0% 100.0%

Low risk Mgmt attention Substandard Non-performing Total loan bookMar 12 Dec 11

Share of total Share of total

30 April 2012London

Q1 2012 results6464

Asset quality analysis – Total exposure by region (country of origination) Mar 12

in EUR millionLow risk Management

attentionSubstandard Non-

performingCredit risk exposure

Core market 154,217 24,605 4,742 11,259 194,822Austria 81,781 9,424 1,676 3,272 96,153Croatia 6,229 2,269 436 1,066 10,000Romania 11,250 4,174 862 2,970 19,256Serbia 664 365 14 72 1,115Slovakia 11,592 1,161 267 561 13,581Slovenia 1,475 228 118 291 2,113Czech Republic 32,211 4,372 700 1,106 38,390Ukraine 212 764 112 209 1,297Hungary 8,803 1,848 555 1,711 12,917

Other EU 26,439 1,399 198 617 28,653Other industrialised countries 3,143 144 45 163 3,494Emerging markets 2,737 367 76 195 3,374

Southeastern Europe / CIS 1,207 258 36 152 1,653Asia 745 11 38 19 813Latin America 124 22 2 9 157Middle East / Africa 661 75 0 15 752

Total 186,536 26,514 5,060 12,234 230,343

30 April 2012London

Q1 2012 results6565

Asset quality analysis – Total exposure by region (country of origination) Dec 11

in EUR millionLow risk Management

attention Substandard Non-performing

Credit risk exposure

Core market 142,947 25,055 4,889 10,822 183,714Austria 76,513 9,114 1,686 3,316 90,629Croatia 5,954 2,417 466 982 9,818Romania 10,641 4,924 869 2,813 19,247Serbia 587 365 16 71 1,039Slovakia 10,299 1,412 260 539 12,509Slovenia 1,519 264 167 236 2,187Czech Republic 29,197 4,128 693 1,039 35,058Ukraine 423 574 136 230 1,362Hungary 7,812 1,858 598 1,597 11,864

Other EU 25,336 1,466 170 613 27,584Other industrialised countries 4,181 204 46 178 4,610Emerging markets 2,960 313 89 186 3,549

Southeastern Europe / CIS 1,298 222 47 148 1,714Asia 714 14 40 22 791Latin America 167 8 2 9 186Middle East / Africa 782 69 0 7 858

Total 175,425 27,038 5,194 11,800 219,457

30 April 2012London

Q1 2012 results6666

Financial assets by rating(31 Mar 2012: EUR 39.6 bn)

25.9%

7.5%

7.8%

43.2%

1.1%14.5%

AAA AA A BBB BB B CCC CC D NR

Asset quality analysis – Financial assets

Financial assets by country of origination(31 Mar 2012: EUR 39.6 bn)

27.0%

23.0%

8.5%

13.9%

5.1%3.5%

4.1%

1.3%2.0%

11.6%

AT CZ SK US DE HU RO IT GB Other

Financial assets by currency(31 Mar 2012: EUR 39.6 bn)

62.3%22.2%

5.5% 2.6%

3.5%3.9%

EUR CZK USD HUF RON Other

Financial assets by issuer/product(31 Mar 2012: EUR 39.6 bn)

67.1%

19.0%

4.7% 0.4%4.5%

4.2%

GOVT BANK CORP STRUCT. FIN. FUND EQUITY

30 April 2012London

Q1 2012 results6767

Balance sheet (IFRS) drill-down – Trading assets as of 31 Mar 2012

−

YTD rise in trading assets mainly due to short term T-bill investments in HU

in EUR mCZ 1,581 22.8% 5 0.8% 4 0.8% 1,590 19.6%SK 626 9.1% 0 0.0% 0 0.0% 626 7.7%RO 658 9.5% 2 0.3% 1 0.1% 660 8.1%HU 2,824 40.8% 9 1.5% 26 4.8% 2,860 35.2%AT 102 1.5% 271 42.1% 222 40.0% 595 7.3%IT 0 0.0% 15 2.3% 0 0.0% 15 0.2%ES 0 0.0% 3 0.5% 0 0.0% 3 0.0%GR 0 0.0% 0 0.0% 0 0.0% 0 0.0%IE 0 0.0% 0 0.0% 16 2.9% 16 0.2%PT 0 0.0% 0 0.0% 0 0.0% 0 0.0%FR 8 0.1% 14 2.1% -22 -4.0% 0 0.0%BE 1 0.0% 5 0.7% 0 0.0% 5 0.1%DE 457 6.6% 188 29.1% 56 10.2% 701 8.6%NL 0 0.0% 31 4.9% 12 2.2% 44 0.5%Other 660 9.5% 101 15.7% 238 43.0% 1,000 12.3%Total 6,917 100.0% 644 100.0% 554 100.0% 8,116 100.0%

Sovereign Banks Other Total Trading

30 April 2012London

Q1 2012 results6868

Balance sheet (IFRS) drill-down – Financial assets at fair value as of 31 Mar 2012

−

Decline due to the reduction in non-core assets

in EUR mCZ 117 29.7% 169 35.3% 15 4.4% 301 24.7%SK 49 12.4% 1 0.2% 8 2.3% 58 4.8%RO 6 1.5% 0 0.0% 5 1.3% 10 0.8%HU 111 28.1% 0 0.0% 0 0.0% 111 9.1%AT 0 0.1% 65 13.6% 135 38.9% 201 16.5%IT 0 0.0% 5 1.0% 0 0.0% 5 0.4%ES 102 25.9% 34 7.0% 0 0.0% 135 11.1%GR 1 0.3% 0 0.0% 0 0.1% 1 0.1%IE 0 0.0% 0 0.0% 0 0.0% 0 0.0%PT 0 0.0% 0 0.0% 0 0.0% 0 0.0%FR 0 0.0% 0 0.0% 2 0.6% 2 0.2%BE 0 0.0% 0 0.0% 0 0.0% 0 0.0%DE 0 0.0% 140 29.2% 19 5.5% 159 13.0%NL 0 0.0% 0 0.0% 21 6.0% 21 1.7%Other 8 2.0% 65 13.6% 142 40.9% 215 17.7%Total 394 100.0% 478 100.0% 348 100.0% 1,220 100.0%

Sovereign Banks Other Total FV

30 April 2012London

Q1 2012 results6969

Balance sheet (IFRS) drill-down – Financial assets available for sale as of 31 Mar 2012−

Investment of surplus liquidity mainly in Austria, Slovakia, Czech Republic and in preparation for Basel 3 liquidity requirements

in EUR mCZ 1,265 10.7% 226 4.4% 113 2.4% 1,604 7.4%SK 1,666 14.1% 71 1.4% 35 0.7% 1,772 8.2%RO 1,103 9.3% 21 0.4% 9 0.2% 1,133 5.2%HU 416 3.5% 0 0.0% 3 0.1% 420 1.9%AT 4,918 41.5% 1,520 29.8% 2,276 48.3% 8,714 40.2%IT 50 0.4% 135 2.6% 22 0.5% 207 1.0%ES 33 0.3% 66 1.3% 31 0.7% 130 0.6%GR 5 0.0% 10 0.2% 4 0.1% 18 0.1%IE 20 0.2% 56 1.1% 10 0.2% 86 0.4%PT 3 0.0% 13 0.2% 6 0.1% 22 0.1%FR 57 0.5% 170 3.3% 78 1.7% 306 1.4%BE 142 1.2% 0 0.0% 37 0.8% 179 0.8%DE 423 3.6% 1,003 19.6% 160 3.4% 1,586 7.3%NL 38 0.3% 430 8.4% 114 2.4% 582 2.7%Other 1,715 14.5% 1,388 27.2% 1,813 38.5% 4,916 22.7%Total 11,856 100.0% 5,109 100.0% 4,710 100.0% 21,675 100.0%

Sovereign Banks Other Total AfS

30 April 2012London

Q1 2012 results7070

Balance sheet (IFRS) drill-down – Financial assets held-to-maturity as of 31 Mar 2012−

Investment of surplus liquidity mainly in Czech Republic, Austria, Slovakia, and Romania; preparation for Basel 3 liquidity requirements

in EUR mCZ 6,885 46.8% 282 14.2% 25 2.6% 7,192 40.7%SK 2,731 18.6% 2 0.1% 24 2.4% 2,757 15.6%RO 2,235 15.2% 0 0.0% 0 0.0% 2,235 12.6%HU 1,087 7.4% 0 0.0% 0 0.0% 1,087 6.2%AT 1,273 8.7% 333 16.8% 188 19.0% 1,794 10.1%IT 0 0.0% 247 12.4% 59 6.0% 307 1.7%ES 1 0.0% 89 4.5% 137 13.8% 226 1.3%GR 0 0.0% 10 0.5% 0 0.0% 10 0.1%IE 0 0.0% 13 0.7% 0 0.0% 13 0.1%PT 0 0.0% 15 0.8% 0 0.0% 15 0.1%FR 0 0.0% 83 4.2% 99 10.0% 182 1.0%BE 0 0.0% 0 0.0% 10 1.0% 10 0.1%DE 21 0.1% 238 12.0% 31 3.1% 289 1.6%NL 0 0.0% 225 11.3% 89 9.0% 314 1.8%Other 468 3.2% 450 22.6% 327 33.0% 1,244 7.0%Total 14,703 100.0% 1,987 100.0% 989 100.0% 17,679 100.0%

Sovereign Banks Other Total HTM

30 April 2012London

Q1 2012 results7171

Off-balance sheet items – Exclusively related to customer business

−

Detail on guarantees & warranties:−

appr. 55% is related to Austria (mainly guarantees for construction companies)−

appr. 70% is EUR-based−

appr. 90% is towards low risk and management attention category−

Detail on undrawn lines and loan commitments:−

appr. 65% related to Austria−

appr. 80% is EUR-based−

product split remained unchanged in Corporate and Reail with appr. 2/3 related to revolving loans, appr. 1/5 related to term loans and rest to overdrafts and other

in EUR million Mar 2012 Dec 2011Guarantees and warranties 6,842 6,920

of which: in relation to corporate business 6,084 6,170Undrawn lines, loan commitments, promissory nots 18,570 18,579

of which: in relation to corporate business 9,930 9,762of which: in relation to retail business 7,345 7,238of which: in relation to sovereigns, municipalities 1,176 1,221

Total 25,412 25,499

30 April 2012London

Q1 2012 results7272

Presentation topics

−


−


−

Credit risk

−

Funding

−

Capital

−

Outlook

−

Appendix

−

Segments−

Asset quality−




30 April 2012London

Q1 2012 results7373

Key local entity data (IFRS, consolidated) – Ceska sporitelna

Rate and margin environment

66.5% 67.3% 67.3% 71.9% 69.8%

1.0% 1.0%

3.7% 3.9% 3.9% 3.8% 3.8%

1.0% 1.0%0.9%

0%

20%

40%

60%

80%


2%

4%

6%

8%

Loan/deposit ratio (eop) 1m LCY market rate (eop) Net interest margin (ytd)

in EUR million 1-3 12 1-3 11 ChangeNet interest income 312.4 295.6 5.7%Risk provisions for loans and advances (44.6) (77.7) (42.6%)Net fee and commission income 116.1 120.5 (3.7%)Net trading result 31.1 37.3 (16.6%)General administrative expenses (187.4) (188.3) (0.5%)Other operating result (16.8) (13.3) (26.3%)Result from financial assets - FV 6.4 7.0 (8.6%)Result from financial assets - AfS 4.1 7.7 (46.8%)Result from financial assets - HtM 1.7 (0.2) na Pre-tax profit from continuing operations 223.0 188.6 18.2%Taxes on income (46.8) (36.5) 28.2%Post-tax profit from continuing operations 176.2 152.1 15.8%Post-tax profit from discontinuing operations 0.0 0.0 na Net profit for the period 176.2 152.1 15.8%

Attributable to non-controlling interests (1.4) 0.2 na Attributable to owners of the parent 177.6 151.9 16.9%

EUR FX rate (ave) 25.1 25.1

in EUR million Mar 12 Dec 11 ChangeLoans and advances to credit institutions 3,279 3,131 4.7%Loans and advances to customers 19,500 19,553 (0.3%)Risk provisions for loans and advances (753) (727) 3.6%Financial assets - at fair value through profit or loss 453 474 (4.5%)Financial assets - available for sale 1,873 1,459 28.4%Financial assets - held to maturity 7,723 7,078 9.1%Other assets 4,784 5,126 (6.7%)Total assets 36,858 36,094 2.1%Interest-bearing assets 32,075 30,968 3.6%Deposits by banks 2,041 2,138 (4.5%)Customer deposits 27,952 27,185 2.8%Debt securities in issue 1,811 1,844 (1.8%)Other liabilities 1,622 1,699 (4.5%)Total equity 3,433 3,228 6.3%

Attributable to non-controlling interests (0) 1 na Attributable to owners of the parent 3,433 3,227 6.4%

EUR FX rate (eop) 24.7 24.7

Key figures and ratios 1-3 12 1-3 11

Cost/income ratio 40.8% 41.5%Return on equity 21.6% 21.0%

Mar 12 Dec 11 ChangeErste Group stake 97.99%Solvency ratio 13.4% 13.1%

Employees 10,673 10,661 0.1%Branches 654 654 0.0%Customers (in m) 5.2 5.2 (0.3%)

Market share - retail loans 24.2% 24.3%Market share - retail deposits 28.3% 28.1%Market share - corporate loans 19.0% 19.0%Market share - corporate deposits 10.4% 10.8%Market share - total assets 20.4% 20.3%

*) To eliminate currency effects, 1-3 12 exchange rates were used for P&L and BS conversion. Market share data is as of Mar 2012. Solvency ratio is preliminary.

30 April 2012London

Q1 2012 results7474

Key local entity data (IFRS, consolidated) – BCR


137.4% 134.1% 135.5% 134.6% 136.2%

5.9% 5.6% 5.4% 4.8%

4.4% 4.6%6.2%

5.2%

5.5%4.5%

0%

50%

100%

150%


3%

6%

9%

12%

15%

Loan/deposit ratio (eop) Net interest margin (ytd) 1m LCY market rate (eop)

in EUR million 1-3 12 1-3 11 ChangeNet interest income 172.4 197.3 (12.6%)Risk provisions for loans and advances (214.1) (105.1) >100.0% Net fee and commission income 35.7 35.4 0.8%Net trading result 28.2 9.5 >100.0% General administrative expenses (96.3) (102.4) (6.0%)Other operating result (9.2) (12.8) 28.1%Result from financial assets - FV 0.8 0.3 >100.0% Result from financial assets - AfS 0.5 0.0 na Result from financial assets - HtM 0.0 0.0 na Pre-tax profit from continuing operations (82.0) 22.2 na Taxes on income 11.7 (4.7) na Post-tax profit from continuing operations (70.3) 17.5 na Post-tax profit from discontinuing operations 0.0 0.0 na Net profit for the period (70.3) 17.5 na

Attributable to non-controlling interests 0.2 0.1 >100.0% Attributable to owners of the parent (70.5) 17.4 na


in EUR million Mar 12 Dec 11 ChangeLoans and advances to credit institutions 149 251 (40.7%)Loans and advances to customers 12,294 12,181 0.9%Risk provisions for loans and advances (1,460) (1,272) 14.8%Financial assets - at fair value through profit or loss 10 10 6.3%Financial assets - available for sale 997 1,197 (16.7%)Financial assets - held to maturity 2,124 1,828 16.2%Other assets 3,120 3,319 (6.0%)Total assets 17,234 17,514 (1.6%)Interest-bearing assets 14,114 14,195 (0.6%)Deposits by banks 4,920 5,227 (5.9%)Customer deposits 9,027 9,052 (0.3%)Debt securities in issue 329 259 27.5%Other liabilities 1,302 1,254 3.8%Total equity 1,656 1,722 (3.8%)

Attributable to non-controlling interests 3 3 6.7%Attributable to owners of the parent 1,652 1,719 (3.9%)



Cost/income ratio 40.8% 42.3%Return on equity (16.4%) 4.3%


Employees 8,928 9,245 (3.4%)Branches 667 667 0.0%Customers (in m) 3.6 3.7 (1.4%)



30 April 2012London

Q1 2012 results7575

Key local entity data (IFRS, consolidated) – Slovenska sporitelna


75.5% 77.3% 77.9% 83.4% 83.6%

1.0% 1.3% 1.4% 1.1%0.4%

4.4% 4.4% 4.5% 4.5% 4.2%

0%

20%

40%

60%

80%

100%


2%

4%

6%

8%

Loan/deposit ratio (eop) 1m EURIBOR (eop) Net interest margin (ytd)

in EUR million 1-3 12 1-3 11 ChangeNet interest income 113.3 115.2 (1.6%)Risk provisions for loans and advances (19.6) (22.9) (14.3%)Net fee and commission income 29.5 29.9 (1.2%)Net trading result 6.5 3.0 >100.0% General administrative expenses (60.6) (57.5) 5.4%Other operating result (8.0) (5.1) (58.8%)Result from financial assets - FV 0.7 (0.1) na Result from financial assets - AfS 0.7 0.0 na Result from financial assets - HtM 0.6 0.0 na Pre-tax profit from continuing operations 63.0 62.4 0.9%Taxes on income (12.6) (12.4) 2.1%Post-tax profit from continuing operations 50.4 50.1 0.6%Post-tax profit from discontinuing operations 0.0 0.0 na Net profit for the period 50.4 50.1 0.6%

Attributable to non-controlling interests 0.0 0.0 (7.5%)Attributable to owners of the parent 50.3 50.0 0.6%

in EUR million Mar 12 Dec 11 ChangeLoans and advances to credit institutions 632 613 3.0%Loans and advances to customers 6,811 6,697 1.7%Risk provisions for loans and advances (425) (409) 3.9%Financial assets - at fair value through profit or loss 28 28 1.4%Financial assets - available for sale 1,050 980 7.2%Financial assets - held to maturity 2,456 2,560 (4.1%)Other assets 1,046 880 18.9%Total assets 11,597 11,349 2.2%Interest-bearing assets 10,551 10,469 0.8%Deposits by banks 1,508 1,448 4.1%Customer deposits 8,145 8,034 1.4%Debt securities in issue 405 367 10.3%Other liabilities 496 461 7.5%Total equity 1,043 1,039 0.4%

Attributable to non-controlling interests 3 3 1.4%Attributable to owners of the parent 1,041 1,036 0.4%



Mar 12 Dec 11 ChangeErste Group stake 100.0% 100.0%Solvency ratio 16.0% 15.0%

Employees 4,060 4,157 (2.3%)Branches 292 292 0.0%Customers (in m) 2.4 2.4 (0.3%)


*) Market share data is as of Mar 2012. Solvency ratio is preliminary.

30 April 2012London

Q1 2012 results7676

Key local entity data (IFRS, consolidated) – Erste Bank Hungary


177.6% 184.4% 177.5% 191.8% 177.6%6.0% 6.0%

4.0% 4.1% 4.4% 4.0% 3.6%

6.1%7.1%7.1%

0%

90%

180%

270%


2%

4%

6%

8%

10%

12%


in EUR million 1-3 12 1-3 11 ChangeNet interest income 86.9 87.8 (1.0%)Risk provisions for loans and advances (131.2) (69.8) 88.0%Net fee and commission income 23.1 22.9 0.9%Net trading result 15.1 9.4 60.6%General administrative expenses (44.1) (48.9) (9.8%)Other operating result (16.3) (20.0) 18.5%Result from financial assets - FV 0.0 0.0 na Result from financial assets - AfS 0.0 0.0 na Result from financial assets - HtM 0.0 0.0 na Pre-tax profit from continuing operations (66.5) (18.6) >100.0% Taxes on income (4.5) (4.1) 9.8%Post-tax profit from continuing operations (71.0) (22.7) >100.0% Post-tax profit from discontinuing operations 0.0 0.0 na Net profit for the period (71.0) (22.7) >100.0%

Attributable to non-controlling interests 0.0 0.0 na Attributable to owners of the parent (71.0) (22.7) >100.0%


in EUR million Mar 12 Dec 11 ChangeLoans and advances to credit institutions 769 767 0.3%Loans and advances to customers 7,184 7,851 (8.5%)Risk provisions for loans and advances (1,116) (1,133) (1.5%)Financial assets - at fair value through profit or loss 0 0 na Financial assets - available for sale 409 545 (24.9%)Financial assets - held to maturity 1,055 1,065 (0.9%)Other assets 2,464 1,938 27.2%Total assets 10,766 11,032 (2.4%)Interest-bearing assets 8,302 9,094 (8.7%)Deposits by banks 5,591 5,711 (2.1%)Customer deposits 4,046 4,094 (1.2%)Debt securities in issue 11 16 (30.6%)Other liabilities 584 607 (3.8%)Total equity 533 603 (11.6%)

Attributable to non-controlling interests 0 0 na Attributable to owners of the parent 533 603 (11.6%)



Cost/income ratio 35.3% 40.7%Return on equity n.a. (17.2%)


Employees 2,613 2,948 (11.4%)Branches 143 184 (22.3%)Customers (in m) 0.9 0.9 (1.3%)



30 April 2012London

Q1 2012 results7777

Key local entity data (IFRS, consolidated) – Erste Bank Croatia


148% 145% 150% 154%131%

0.8%

3.8% 3.9%

0.9%

3.9%

1.7%

2.6%

4.1%3.6%

4.1%

0%

30%

60%

90%

120%

150%

180%


2%

4%

6%


in EUR million 1-3 12 1-3 11 ChangeNet interest income 70.2 60.4 16.2%Risk provisions for loans and advances (25.7) (20.1) 27.9%Net fee and commission income 16.3 11.9 37.0%Net trading result 4.6 4.5 2.2%General administrative expenses (35.7) (30.2) 18.2%Other operating result (4.0) (1.5) na Result from financial assets - FV 0.0 0.0 na Result from financial assets - AfS 0.0 (1.2) na Result from financial assets - HtM 0.0 0.0 na Pre-tax profit from continuing operations 25.7 23.8 8.0%Taxes on income (5.1) (4.9) (4.1%)Post-tax profit from continuing operations 20.6 18.9 9.0%Post-tax profit from discontinuing operations 0.0 0.0 na Net profit for the period 20.6 18.9 9.0%

Attributable to non-controlling interests 0.3 0.0 na Attributable to owners of the parent 20.3 18.9 7.4%


in EUR million Mar 12 Dec 11 ChangeLoans and advances to credit institutions 861 816 5.4%Loans and advances to customers 6,467 6,360 1.7%Risk provisions for loans and advances (435) (413) 5.3%Financial assets - at fair value through profit or loss 0 0 na Financial assets - available for sale 851 855 (0.5%)Financial assets - held to maturity 87 80 8.9%Other assets 672 694 (3.2%)Total assets 8,503 8,392 1.3%Interest-bearing assets 7,831 7,698 1.7%Deposits by banks 3,188 3,044 4.7%Customer deposits 4,203 4,245 (1.0%)Debt securities in issue 0 0 na Other liabilities 197 222 (11.1%)Total equity 915 881 3.8%

Attributable to non-controlling interests 4 4 6.8%Attributable to owners of the parent 910 877 3.8%





Employees 2,612 2,599 0.5%Branches 146 146 0.0%Customers (in m) 1.0 1.0 (0.7%)



30 April 2012London

Q1 2012 results7878

Key local entity data (IFRS, consolidated) – Erste Bank Serbia

in EUR million 1-3 12 1-3 11 ChangeNet interest income 9.6 9.1 5.5%Risk provisions for loans and advances (2.2) (1.9) 15.8%Net fee and commission income 3.3 2.4 37.5%Net trading result 0.4 0.0 na General administrative expenses (8.4) (7.9) 6.3%Other operating result (0.3) (0.3) 0.0%Result from financial assets - FV 0.0 0.0 na Result from financial assets - AfS 0.0 0.0 na Result from financial assets - HtM 0.0 0.0 na Pre-tax profit from continuing operations 2.4 1.4 71.4%Taxes on income 0.0 0.0 na Post-tax profit from continuing operations 2.4 1.4 71.4%Post-tax profit from discontinuing operations 0.0 0.0 na Net profit for the period 2.4 1.4 71.4%

Attributable to non-controlling interests 0.0 0.0 na Attributable to owners of the parent 2.4 1.4 71.4%


in EUR million Mar 12 Dec 11 ChangeLoans and advances to credit institutions 75 77 (2.2%)Loans and advances to customers 482 461 4.7%Risk provisions for loans and advances (54) (49) 9.9%Financial assets - at fair value through profit or loss 0 0 na Financial assets - available for sale 29 35 (18.1%)Financial assets - held to maturity 22 3 >100.0% Other assets 106 119 (10.9%)Total assets 661 645 2.4%Interest-bearing assets 554 526 5.4%Deposits by banks 58 46 25.9%Customer deposits 458 459 (0.1%)Debt securities in issue 0 0 na Other liabilities 34 32 5.0%Total equity 110 108 2.2%

Attributable to non-controlling interests 0 0 na Attributable to owners of the parent 110 108 2.2%





Employees 906 919 (1.4%)Branches 66 66 0.0%Customers (in m) 0.3 0.3 0.4%



103.8% 100.4% 105.3%99.2% 96.7%

8.0% 7.9% 7.7% 6.7%

13.0%10.5% 10.3%

13.3%12.2%

8.0%

0%

20%

40%

60%

80%

100%

120%


5%

10%

15%

20%



30 April 2012London

Q1 2012 results7979

Key local entity data (IFRS, consolidated) – Erste Bank Ukraine


263% 262%228% 215%

324%

5.9% 6.0%9.9%

20.3%

6.5%9.5%

4.2%6.3%6.2%

5.4%

0%

100%

200%

300%

400%

500%


5%

10%

15%

20%

25%


in EUR million 1-3 12 1-3 11 ChangeNet interest income 10.7 10.2 4.9%Risk provisions for loans and advances (2.8) (3.6) (22.2%)Net fee and commission income 0.7 0.5 40.0%Net trading result 0.5 4.3 (88.4%)General administrative expenses (12.0) (12.4) (3.2%)Other operating result (0.4) (0.1) >100.0% Result from financial assets - FV 0.0 0.0 na Result from financial assets - AfS (0.7) 2.2 na Result from financial assets - HtM 0.0 0.0 na Pre-tax profit from continuing operations (4.0) 1.1 na Taxes on income 0.0 0.0 na Post-tax profit from continuing operations (4.0) 1.1 na Post-tax profit from discontinuing operations 0.0 0.0 na Net profit for the period (4.0) 1.1 na

Attributable to non-controlling interests 0.0 0.0 na Attributable to owners of the parent (4.0) 1.1 na


in EUR million Mar 12 Dec 11 ChangeLoans and advances to credit institutions 67 126 (46.5%)Loans and advances to customers 440 480 (8.3%)Risk provisions for loans and advances (90) (119) (24.3%)Financial assets - at fair value through profit or loss 0 0 na Financial assets - available for sale 201 220 (8.5%)Financial assets - held to maturity 0 0 na Other assets 206 188 9.4%Total assets 824 895 (7.9%)Interest-bearing assets 619 707 (12.5%)Deposits by banks 396 545 (27.5%)Customer deposits 205 183 11.8%Debt securities in issue 0 0 na Other liabilities 121 59 >100.0% Total equity 103 107 (4.0%)

Attributable to non-controlling interests 0 0 na Attributable to owners of the parent 103 107 (4.0%)



Cost/income ratio 100.8% 82.7%Return on equity na 4.1%


Employees 1,583 1,685 (6.1%)Branches 121 131 (7.6%)Customers (in m) 0.2 0.2 6.1%



30 April 2012London

Q1 2012 results808080

Presentation topics

−


−


−

Credit risk

−

Funding

−

Capital

−

Outlook

−

Appendix

−

Segments−

Asset quality−




30 April 2012London

Q1 2012 results8181

Strategy – A real customer need is the reason for all business

Retail banking

Corporatebanking

Capital markets

Public sector

Interbankbusiness

Customer banking in Central and Eastern Europe

Eastern part of EU Focus on CEE, limited exposure to other Europe

Focus on local currency mortgage and consumer loansfunded by local deposits

FX loans only where funded by local FX deposits (RO & HR)

Savings products, asset management and pension products

Potential future expansion into Poland

Focus on customer business, incl. customer-based trading activities

In addition to core markets, presences in Poland, Turkey, Germany and London with institutional client focus and selected product mix

Building debt and equity capital markets in CEE

Financing sovereigns and municipalities with focus on infrastructure development in core markets

Any sovereign holdings are only held for market-making, liquidity or balance sheet management reasons

Large, local corporate and SME banking

Advisory services, with focus on providing access to capital marekts and corporate finance

Real estate business that goes beyond financing

Potential future expansion into Poland

Focus on banks that operate in the core markets

Any bank exposure is only held for liquidity or balance sheet management reasons or to support client business

30 April 2012London

Q1 2012 results8282

Indirect PresenceNon-EU or non-EU-candidate country

EU or EU candidate country

Strategy – Customer banking in the eastern part of the EU

Clients: 5.2m

Czech Republic

Retail loans: 24.2% Retail dep.: 28.3%

Branches: 654

Clients: 2.4m

Slovakia

Retail loans: 26.4%Retail dep.: 25.7%

Branches: 292

The leading retail bank with 16.9 m customers

One of the leading corporate banks

Erste Group

Clients: 0.9m

Hungary


Branches: 143

Clients: 0.2m

Ukraine


Branches: 121

Strong capital markets presence

Clients: 3.6m

Romania

Retail loans: 18.0%Retail dep.: 22.2% Branches: 667Clients: 0.3m

Serbia

Retail loans: 3.3%Retail dep.: 2.5% Branches: 66

Clients: 1.0m

Croatia

Retail loans: 13.9% Retail dep.: 13.0%Branches: 146

Clients: 3.2m

Austria

Retail loans: 19.2% Retail dep.: 18.7%

Branches: 1,050

30 April 2012London

Q1 2012 results83

Erste Group’s intangible asset split – BCR goodwill remains single biggest intangible

Intangibles composition

1.9 1.81.1 1.1 1.1

0.3 0.3

0.3 0.3 0.3

0.5 0.5

0.4 0.4 0.4

0.5 0.5

0.5 0.5 0.5

0.3 0.3

0.0 0.0 0.0

0.4 0.4

0.3 0.3 0.3

0.6 0.6

0.6 0.6 0.6

4.7 4.6

3.5 3.5 3.5

0

1

2

3

4

5

6

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12

in E

UR

bill

ion

BCR goodwill Brand Customer relationshipsCzech goodwill Hungarian goodwill Slovak goodwillOther goodwill Software

30 April 2012London

Q1 2012 results8484

Erste Group historic financials – Quarterly income statement (IFRS)

in EUR million Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12

Net interest income 1,330.3 1,368.0 1,397.5 1,343.4 1,302.0 1,401.9 1,430.2 1,434.9 1,336.9Net fee and commission income 448.1 469.5 452.4 472.5 455.2 450.9 445.9 435.2 430.3Net trading result 170.8 (117.5) 237.1 31.5 236.7 52.1 (251.4) 84.9 93.6Operating income 1,949.2 1,720.0 2,087.0 1,847.4 1,993.9 1,904.9 1,624.7 1,955.0 1,860.8Personnel expenses (545.7) (545.3) (566.5) (606.3) (576.1) (566.2) (578.0) (603.4) (570.5)Other administrative expenses (313.8) (302.6) (312.3) (237.2) (292.4) (303.3) (294.1) (262.6) (283.3)Depreciation and amortisation (93.6) (97.4) (94.5) (101.6) (94.5) (93.8) (93.2) (93.3) (91.3)General administrative expenses (953.1) (945.3) (973.3) (945.1) (963.0) (963.3) (965.3) (959.3) (945.1)Operating result 996.1 774.7 1,113.7 902.3 1,030.9 941.6 659.4 995.7 915.7Risk provisions for loans and advances (531.2) (553.0) (504.2) (432.6) (460.1) (460.7) (938.4) (407.7) (580.6)Other operating result (67.7) (91.1) (124.6) (155.9) (128.7) (131.5) (1,200.2) (129.5) 131.2Result from financial instruments - FV 13.0 (37.6) 16.8 1.8 9.5 (29.4) 12.1 8.1 41.5Result from financial assets - AfS 0.1 36.3 (17.9) (9.3) 19.2 (5.1) (76.9) (3.4) (14.7)Result from financial assets - HtM 4.7 (0.1) (3.8) (6.3) 0.2 1.8 (19.0) (10.1) (6.0)Pre-tax profit/loss 415.0 129.2 480.0 300.0 471.0 316.7 (1,563.0) 453.1 487.1Taxes on income (95.5) (26.0) (111.1) (48.3) (106.8) (68.6) 70.4 (135.4) (107.2)Post-tax profit from discontinuing operations 319.5 103.2 368.9 251.7 364.2 248.1 (1,492.6) 317.7 379.9Net profit/loss for the period 319.5 103.2 368.9 251.7 364.2 248.1 (1,492.6) 317.7 379.9

Attributable to non-controlling interests 52.8 61.0 44.0 6.8 42.8 48.7 1.2 63.6 33.4Attributable to owners of the parent 266.7 42.2 324.9 244.9 321.4 199.4 (1,493.8) 254.1 346.5

Cost/income ratio 48.9% 55.0% 46.6% 51.2% 48.3% 50.6% 59.4% 49.1% 50.8%Return on equity 8.3% 1.3% 9.9% 7.3% 9.6% 5.9% (45.7%) 8.4% 11.2%

30 April 2012London

Q1 2012 results8585

Erste Group historic financials – Quarterly balance sheet (IFRS)in EUR million Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12

Cash and balances with central banks 5,965 6,540 5,030 5,839 5,043 6,605 5,743 9,413 5,480Loans and advances to credit institutions 16,123 16,408 14,464 12,496 16,471 13,373 13,559 7,578 13,403Loans and advances to customers 129,872 130,573 131,123 132,334 132,422 133,670 135,211 134,750 134,793Risk provisions for loans and advances (5,390) (5,796) (6,210) (6,119) (6,399) (6,516) (7,189) (7,027) (7,407)Derivative financial instruments 5,342 5,610 6,240 8,508 7,096 7,438 12,076 10,931 10,989Trading assets 6,367 5,536 6,349 5,536 7,777 8,357 7,350 5,876 8,116Financial assets - at fair value through profit or loss 3,373 3,563 2,855 2,435 3,383 2,806 2,351 1,813 1,220Financial assets - available for sale 18,246 18,331 18,701 17,751 18,820 18,978 19,662 20,245 21,675Financial assets - held to maturity 13,808 14,412 14,477 14,235 15,380 16,023 16,403 16,074 17,679Equity holdings in associates accounted for at equity 230 228 231 223 225 218 197 173 178Intangible assets 4,926 4,716 4,762 4,675 4,705 4,608 3,525 3,532 3,480Property and equipment 2,369 2,353 2,388 2,446 2,472 2,449 2,401 2,361 2,285Current tax assets 133 101 116 116 123 123 130 116 115Deferred tax assets 508 567 532 617 590 563 558 702 618Assets held for sale 59 59 51 52 59 106 81 87 188Other assets 5,855 5,724 5,243 4,626 5,134 5,170 4,036 3,382 3,897Total assets 207,786 208,925 206,352 205,770 213,301 213,971 216,094 210,006 216,709

Deposits by banks 25,605 26,730 22,714 20,154 24,311 23,324 21,720 23,785 25,373Customer deposits 115,595 116,558 115,329 117,016 119,198 120,817 121,594 118,880 122,349Debt securities in issue 30,596 29,841 32,013 31,298 33,536 32,566 34,594 30,782 32,135Derivative financial instruments 4,484 5,251 5,143 8,399 6,815 7,393 10,287 9,337 9,332Trading liabilities 422 323 328 216 485 595 534 536 558Provisions 1,646 1,613 1,568 1,545 1,529 1,540 1,540 1,580 1,558Current tax liabilities 44 51 52 68 73 47 46 34 52Deferred tax liabilities 308 270 311 328 325 309 175 345 360Liabilities associated with assets held for sale 0 0 0 0 0 0 0 0 0Other liabilities 6,437 6,423 6,460 4,350 4,376 4,690 4,222 3,764 4,243Subordinated liabilities 6,191 5,978 5,956 5,838 5,532 5,720 5,941 5,783 4,776Total equity 16,458 15,887 16,478 16,558 17,121 16,970 15,441 15,180 15,973

Attributable to non-controlling interests 3,464 3,464 3,522 3,444 3,425 3,500 3,555 3,143 3,218Attributable to owners of the parent 12,994 12,423 12,956 13,114 13,696 13,470 11,886 12,037 12,755

Total liabilities and equity 207,786 208,925 206,352 205,770 213,301 213,971 216,094 210,006 216,709

30 April 2012London

Q1 2012 results8686

Quarterly segment reporting – Overview of main segmentsin EUR million

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12Net interest income 1,135.9 1,190.8 1,212.6 1,177.0 1,105.1 127.7 134.1 132.2 149.2 128.2Risk provisions (404.2) (404.1) (880.4) (388.0) (505.4) (55.9) (56.6) (58.0) (7.7) (75.2)Net fee and commission income 413.6 407.6 406.6 414.2 393.9 30.1 31.4 31.5 25.8 20.2Net trading result 37.0 31.8 (17.4) 7.4 45.2 101.2 (35.5) (211.3) 16.4 5.9General administrative expenses (827.8) (826.4) (823.6) (801.0) (809.4) (44.9) (47.2) (45.5) (53.9) (44.6)Other result (54.1) (96.8) (182.2) (72.3) (37.7) (1.4) 7.9 (39.1) (14.1) (21.9)Pre-tax profit 300.4 302.9 (284.4) 337.3 191.7 156.8 34.1 (190.2) 115.7 12.6Taxes on income (70.7) (68.5) (38.3) (86.3) (68.1) (37.3) (5.8) 38.0 (26.2) (4.6)Net profit for the period 229.7 234.4 (322.7) 251.0 123.6 119.5 28.3 (152.2) 89.5 8.0

Attributable to non-controlling interests 37.1 46.2 3.4 57.8 37.4 5.3 3.4 0.2 2.5 1.6Attributable to owners of the parent 192.6 188.2 (326.1) 193.2 86.2 114.2 24.9 (152.4) 87.0 6.4

in EUR millionQ1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12

Net interest income 24.6 41.0 33.8 98.0 46.1 13.8 36.0 51.6 10.7 57.5Risk provisions 0.0 0.0 0.0 (12.0) 0.0 0.0 0.0 0.0 0.0 0.0Net fee and commission income 36.3 32.7 29.9 27.7 35.0 (24.8) (20.8) (22.1) (32.5) (18.8)Net trading result 95.5 50.8 11.1 (2.2) 81.4 3.0 5.0 (33.8) 63.3 (38.9)General administrative expenses (61.6) (59.1) (59.4) (64.7) (57.5) (28.7) (30.6) (36.8) (39.7) (33.6)Other result 3.5 0.4 5.6 0.7 (1.0) (47.8) (75.7) (1,068.3) (49.2) 212.6Pre-tax profit 98.3 65.8 21.0 47.5 104.0 (84.5) (86.1) (1,109.4) (47.4) 178.8Taxes on income (20.8) (13.5) (7.9) (13.4) (21.1) 22.0 19.2 78.6 (9.5) (13.4)Net profit for the period 77.5 52.3 13.1 34.1 82.9 (62.5) (66.9) (1,030.8) (56.9) 165.4

Attributable to non-controlling interests 3.7 3.9 1.2 1.6 1.9 (3.3) (4.8) (3.6) 1.7 (7.5)Attributable to owners of the parent 73.8 48.4 11.9 32.5 81.0 (59.2) (62.1) (1,027.2) (58.6) 172.9

Corporate Center

Group Corporate & Investment BankingRetail & SME

Group Markets

30 April 2012London

Q1 2012 results8787

Quarterly segment reporting – Austria sub-segmentsin EUR million

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12Net interest income 152.9 168.6 180.3 164.1 161.7 234.1 258.1 249.8 273.6 240.9Risk provisions (35.0) (30.2) (27.5) (8.7) (31.4) (62.1) (61.0) (66.9) (60.4) (51.3)Net fee and commission income 82.0 78.1 79.0 81.5 82.7 100.8 95.8 93.9 99.7 98.7Net trading result 2.5 2.3 5.0 10.4 (3.1) 5.6 4.4 (12.1) 14.3 3.9General administrative expenses (149.8) (152.7) (152.0) (154.9) (151.4) (233.4) (235.0) (234.5) (228.0) (235.4)Other result (0.7) (5.7) (27.8) (29.5) 8.6 (6.8) (11.4) (31.4) (32.4) (12.0)Pre-tax profit 51.9 60.4 57.0 62.9 67.1 38.2 50.9 (1.2) 66.8 44.8Taxes on income (11.4) (13.3) (12.5) (13.1) (14.8) (9.5) (12.9) 0.2 (17.9) (11.3)Net profit for the period 40.5 47.1 44.5 49.8 52.3 28.7 38.0 (1.0) 48.9 33.5

Attributable to non-controlling interests 1.4 1.6 0.9 0.4 1.8 26.8 37.8 0.5 43.5 30.6Attributable to owners of the parent 39.1 45.5 43.6 49.4 50.5 1.9 0.2 (1.5) 5.4 2.9


Net interest income 387.0 426.7 430.1 437.7 402.6 387.0 426.7 430.1 437.7 402.6Risk provisions (97.1) (91.2) (94.4) (69.1) (82.7) (97.1) (91.2) (94.4) (69.1) (82.7)Net fee and commission income 182.8 173.9 172.9 181.2 181.4 182.8 173.9 172.9 181.2 181.4Net trading result 8.1 6.7 (7.1) 24.7 0.8 8.1 6.7 (7.1) 24.7 0.8General administrative expenses (383.2) (387.7) (386.5) (382.9) (386.8) (383.2) (387.7) (386.5) (382.9) (386.8)Other result (7.5) (17.1) (59.2) (61.9) (3.4) (7.5) (17.1) (59.2) (61.9) (3.4)Pre-tax profit 90.1 111.3 55.8 129.7 111.9 90.1 111.3 55.8 129.7 111.9Taxes on income (20.9) (26.2) (12.3) (31.0) (26.1) (20.9) (26.2) (12.3) (31.0) (26.1)Net profit for the period 69.2 85.1 43.5 98.7 85.8

Attributable to non-controlling interests 28.2 39.4 1.4 43.9 32.4 28.2 39.4 1.4 43.9 32.4Attributable to owners of the parent 41.0 45.7 42.1 54.8 53.4 41.0 45.7 42.1 54.8 53.4

Erste Bank Oesterreich

Austria

Savings Banks

Austria

30 April 2012London

Q1 2012 results8888

Quarterly segment reporting – Central and Eastern Europe sub-segments (1)in EUR million

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12Net interest income 284.4 305.6 310.3 283.0 282.6 186.0 168.9 162.7 154.7 153.0Risk provisions (70.9) (68.4) (49.3) (21.9) (44.5) (109.4) (114.7) (149.6) (125.6) (191.4)Net fee and commission income 124.7 123.7 124.0 124.1 112.2 34.7 31.2 31.6 32.6 30.2Net trading result 15.5 (0.7) (34.0) (26.3) 16.7 1.1 17.7 20.4 10.1 16.9General administrative expenses (185.1) (180.9) (177.7) (170.2) (179.5) (98.8) (95.2) (88.7) (93.7) (89.7)Other result (7.7) (39.2) (67.4) (7.7) (1.0) (12.2) (13.5) (15.6) 10.4 (7.9)Pre-tax profit 160.9 140.1 105.9 181.0 186.5 1.4 (5.6) (39.2) (11.5) (88.9)Taxes on income (31.0) (26.8) (22.4) (42.2) (39.1) (0.3) 1.1 14.2 8.7 12.6Net profit for the period 129.9 113.3 83.5 138.8 147.4 1.1 (4.5) (25.0) (2.8) (76.3)

Attributable to non-controlling interests 2.5 1.5 (0.3) 5.5 3.1 0.4 (1.5) (7.9) 0.3 (4.1)Attributable to owners of the parent 127.4 111.8 83.8 133.3 144.3 0.7 (3.0) (17.1) (3.1) (72.2)


Net interest income 109.3 112.0 113.1 111.3 106.4 93.0 96.1 114.0 99.6 81.7Risk provisions (20.8) (19.8) (16.1) (16.9) (18.5) (77.3) (77.3) (546.7) (110.7) (131.1)Net fee and commission income 27.9 28.9 26.5 28.9 27.7 22.8 26.2 24.8 24.0 21.9Net trading result 0.8 0.3 (5.0) (0.7) 2.1 3.8 2.8 7.6 4.9 5.6General administrative expenses (55.3) (53.7) (57.6) (57.4) (58.0) (49.6) (51.7) (56.8) (42.4) (41.5)Other result (5.0) (9.9) (16.9) (8.4) (5.4) (21.6) (14.9) (20.8) 0.4 (16.3)Pre-tax profit 56.9 57.8 44.0 56.8 54.3 (28.9) (18.8) (477.9) (24.2) (79.7)Taxes on income (11.5) (11.6) (10.1) (9.1) (11.0) (2.8) (0.8) (2.8) (10.4) (2.1)Net profit for the period 45.4 46.2 33.9 47.7 43.3 (31.7) (19.6) (480.7) (34.6) (81.8)

Attributable to non-controlling interests 0.0 0.2 (0.2) 0.0 0.0 0.0 (0.1) (0.2) 0.3 0.0Attributable to owners of the parent 45.4 46.0 34.1 47.7 43.3 (31.7) (19.5) (480.5) (34.9) (81.8)

Czech Republic Romania

Slovakia Hungary

30 April 2012London

Q1 2012 results8989

Quarterly segment reporting – Central and Eastern Europe sub-segments (2)in EUR million

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12Net interest income 61.3 66.6 66.8 67.1 64.1 8.6 9.6 8.9 9.3 8.7Risk provisions (23.2) (27.2) (21.9) (37.0) (32.2) (2.0) (2.5) (1.8) (3.2) (2.2)Net fee and commission income 17.0 19.3 22.2 18.2 15.8 2.7 3.3 3.0 4.0 3.5Net trading result 3.5 1.9 2.0 3.8 2.2 0.0 0.0 0.3 (0.2) 0.4General administrative expenses (35.7) (36.6) (36.0) (32.8) (33.6) (8.2) (8.7) (8.2) (8.7) (8.3)Other result (1.8) (3.0) (2.1) (3.2) (2.3) (0.3) (0.3) (0.3) (0.3) (0.3)Pre-tax profit 21.1 21.0 31.0 16.1 14.0 0.8 1.4 1.9 0.9 1.8Taxes on income (4.2) (4.2) (4.9) (2.8) (2.4) 0.0 0.0 0.0 0.0 0.0Net profit for the period 16.9 16.8 26.1 13.3 11.6 0.8 1.4 1.9 0.9 1.8

Attributable to non-controlling interests 5.7 6.4 10.1 7.3 5.5 0.3 0.3 0.5 0.5 0.5Attributable to owners of the parent 11.2 10.4 16.0 6.0 6.1 0.5 1.1 1.4 0.4 1.3


Net interest income 6.3 5.3 6.7 14.3 6.0 748.9 764.1 782.5 739.3 702.5Risk provisions (3.5) (3.0) (0.6) (3.6) (2.8) (307.1) (312.9) (786.0) (318.9) (422.7)Net fee and commission income 1.0 1.1 1.6 1.2 1.2 230.8 233.7 233.7 233.0 212.5Net trading result 4.2 3.1 (1.6) (8.9) 0.5 28.9 25.1 (10.3) (17.3) 44.4General administrative expenses (11.9) (11.9) (12.1) (12.9) (12.0) (444.6) (438.7) (437.1) (418.1) (422.6)Other result 2.0 1.1 0.1 (1.6) (1.1) (46.6) (79.7) (123.0) (10.4) (34.3)Pre-tax profit (1.9) (4.3) (5.9) (11.5) (8.2) 210.3 191.6 (340.2) 207.6 79.8Taxes on income 0.0 0.0 0.0 0.5 0.0 (49.8) (42.3) (26.0) (55.3) (42.0)Net profit for the period (1.9) (4.3) (5.9) (11.0) (8.2) 160.5 149.3 (366.2) 152.3 37.8

Attributable to non-controlling interests 0.0 0.0 0.0 0.0 0.0 8.9 6.8 2.0 13.9 5.0Attributable to owners of the parent (1.9) (4.3) (5.9) (11.0) (8.2) 151.6 142.5 (368.2) 138.4 32.8

Croatia Serbia

Ukraine Central and Eastern Europe

30 April 2012London

Q1 2012 results9090

Group statistical data – Expansion slowed, but long term growth trend intact

* Reporting under Basel II as of 1 January 2007;1 Total eligible qualifying capital2 based on credit risk3 1998 – 2003 data adjusted for 4:1 stock split / 2009: equity adjusted for EUR 1.74bn participation capital and pro rata 8% dividend / number of shares adjusted for own shares.

in EUR million 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Mar 12

Tier 1 Capital pursuant to Austrian Banking Act 1,753 2,125 2,337 3,800 3,912 4,377 5,112 6,185 6,674 7,448 11,450 12,219 11,909 12,200

Total own funds pursuant toAustrian Banking Act 1 3,296 3,956 4,308 6,983 7,009 7,286 8,611 10,111 11,114 11,758 15,772 16,220 16,415 16,063

RWA (credit risk) 27,750 31,879 37,803 60,257 62,188 65,384 75,078 94,129 95,091 103,663 106,383 103,950 97,630 94,988

Tier 1 ratio (%) 2 6.3 6.7 6.2 6.3 6.3 6.7 6.8 6.6 7.0 7.2 10.8 11.8 12.2 12.8

Solvency ratio (%) * 10.8 11.2 10.7 11.0 10.7 10.7 11.0 10.2 10.1 9.8 12.7 13.5 14.4 14.4

Market capitalisation 1,950 2,417 3,006 3,837 5,873 9,489 11,442 18,319 15,340 5,136 9,849 13,208 5,109 6,714

Book value per share 3 8.1 9.2 9.5 10.4 11.6 14.3 17.1 25.6 27.0 25.8 28.9 31.2 26.1 27.6

Price-book value ratio 3 1.4 1.3 1.6 1.5 2.1 2.8 2.7 2.3 1.8 0.6 0.9 1.1 0.5 0.6

30 April 2012London

Q1 2012 results9191

Presentation topics

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Credit risk

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Funding

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Capital

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Outlook

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Appendix

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Segments−

Asset quality−




30 April 2012London

Q1 2012 results9292

Shareholder structure – Total number of shares: 394,568,647

By investor By region

March 2012

Free float: 65.5%

Retail Investors

5.2%

Institutional Investors

54.2%

CaixaBank 9.7% Erste

Stiftung 24.8%

Savings banks 4.1%

Employees 2.1%

Continental Europe24.7%

Other2.7%

Austria47.3%

North America

19.7%

UK & Ireland5.6%

30 April 2012London

Q1 2012 results9393

Investor relations contacts

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Erste Group Bank AG, Graben 21, 1010 ViennaFax +43 (0)5 0100-13112 E-mail: [email protected]: www.erstegroup.comReuters: ERST.VI Bloomberg: EBS AVDatastream: O:ERS ISIN: AT0000652011

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Investor relationsThomas Sommerauer Tel: +43 (0)5 0100 17326 e-mail: [email protected]

Peter Makray Tel: +43 (0)5 0100 16878 e-mail: [email protected]

Michael Oplustil Tel: +43 (0)5 0100 17764 e-mail: [email protected]

Simone Pilz Tel: +43 (0)5 0100 13036 e-mail: [email protected]

Miroslava Silanova Tel: +43 (0)5 0100 17795 e-mail: [email protected]

Education

Erste Group - Q1 2012 results presentation